On Saturday August 7 two ships collided off the Mumbai coast and the port has been closed for several days. The Port of Nhava Sheva handles 60% of India’s container traffic. The accident appears to have been caused by failure to follow standard communications protocol between the vessels and the port traffic controllers.
In addition to delays already caused by the monsoon season, the port shutdown will create severe congestion for India ocean freight. Delivery dates for ocean shipments routing through Mumbai will most likely be delayed, and the overflow of time sensitive cargo may impact air capacity into India as well. Import customers may have to pay additional charges for rerouting of containers to alternate ports in India.
Additionally the Port of Mumbai banned shipment of hazardous goods on August 11. This ban will become effective on September 6. It was triggered by a recent chlorine gas leak at the port docs that hospitalized over 100 people.
According to the port authority, “It has been decided that dangerous goods listed under the International Maritime Dangerous Goods Code will not be accepted/handled at Mumbai Port.” The movement of “relatively less” hazardous goods, which include sulphur and calcined petroleum coke, will be permitted on direct delivery basis, subject to a 15-day advance clearance. The list of cargo allowed to be shipped will be modified depending upon the degree of hazard and quantum.”
The sudden decision has prompted protests from the local trade community. The restrictions will further restrict freight capacity in and out of India.
For more information on how this may impact your supply chain please contact your local NNR office.
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