As per the data secured by Container News, the speed of Indian containerized trade flows has begun to slow after recording strong growth last fiscal year.
The largest public handler, Nhava Sheva/JNPT, is witnessing volumes drop during the July-September quarter. As per the data obtained, the port managed 481,595 TEUs last month, which was less than 497,568 TEUs in August and 503,442 TEUs in July, according to data. Importantly, the number of container ships to Nhava Sheva in September 2022 reduced from 194 to 203 in August.
Mr. Sanjay Bhatia of Freightwalla said that ports in India are witnessing a drop in demand from monsoon onset and container volumes are dropping at significant ports globally. He further added that demand was not high as expected in the first quarter and some continued for the second quarter also. However, the major liners speculate that peak season may be underway and it is too early to announce a trade slowdown.
The slowdown has urged major liners who serve Indian trades to reduce spot and contract rates. According to the new government data, the value of Indian produce exports in September stood at US$33.81 billion, down 3.5% year-over-year.
Industry experts expect trade volumes to drastically tighten in the coming months as global economies are battling heightened inflationary woes.
Indian ports reported all-time high container volumes in the financial year 2021-22 – hitting combined throughput of 19.5 million TEUs out of countrywide major/minor ports, a gain of 13% over the previous year.