Morbi Industrial Slowdown Hits Kochi–Gujarat Coastal Shipping Route as Cargo Volumes Decline

Coastal shipping between Kochi and Gujarat has come under pressure following disruptions in Morbi, Gujarat’s key ceramic and industrial manufacturing hub, leading to a noticeable decline in cargo volumes on the route.

According to industry sources, the slowdown in Morbi’s industrial output — particularly in ceramic manufacturing and related exports — has reduced cargo availability for coastal movement. As Morbi is a key cargo origin point for shipments bound for Kerala via Gujarat ports, the disruption has directly impacted feeder services operating along India’s west coast. Logistics operators report lower container utilisation on Kochi-bound vessels, with several sailings operating below optimal capacity.

Morbi’s industrial stress is tied directly to the Middle East conflict. The cluster depends entirely on prompt propane deliveries, with a total demand of 8 million cubic metres per day (m³/d) — but state-run suppliers have informed users that availability has dropped below 2 million m³/d. Argus Media reported that Aramco’s January propane contract price (CP) was $525 per tonne, up $30 per tonne from December. India’s state-run GSPC had already booked three spot LNG cargoes for deliveries in February, specifically to cater to Morbi’s demand. With Middle East term supplies disrupted, Gujarat Gas may also have to lower its piped natural gas (PNG) supply in the region.

The coastal shipping impact on the Kochi–Gujarat corridor is a microcosm of how the Hormuz conflict is cascading through India’s domestic supply chains — from petrochemical inputs in Gujarat, through coastal feeder networks, all the way to end-consumer goods markets in Kerala and beyond.