The state owned ports in the East Coast for a change have done well in
handling of Container Volumes last month compared to their counterparts in the
West coast according to a survey conducted by a Logistics Journal. In the case
of Kattupalli port near Chennai the growth in container volume was 42 per cent
while Krishnapatnam port in South Andhra Pradesh grew by 89 per cent during
The container volumes in terms of Teus at major ports grew by seven
per cent during April 2018 compared to the corresponding period the previous year
The VOC Port Tuticorin near the landís end led the table among the
major ports by registering nineteen per cent growth in April this year compared
to the corresponding month in 2017, The other ports which did well in container
handling included Visakhapatnam14 per cent, Kolkata 10 per cent and Cochin Nine
near Mumbai which has been leader in container handling for the past several
years reported 4 per cent YoY volume growth in Aprí18. The port had introduced
key measures to improve operating efficiency leading to faster ship and
container turnaround time.
port continues to focus on increasing DPD volumes (~39% in Aprí18 vs target of
70 percent of over-the-road imports) despite unresolved issue of pricing parity
amongst terminal operators. JNPT also witnessed truck strikes in first week of
Mayí18 due to selection of four logistics firms to provide cost efficient
transportation solutions for faster evacuation of DPD containers.
port infrastructure limitations in JNPT has led to increase in DPD containers
delivered via CFS (estimated ~60 per cent of total DPD volumes in Aprí18 vs 15
per cent in Febí17) resulting in higher volumes for JNPT CFS operators like
(Allcargo, Gateway Distriparks and Navkar Corporation). Analysts expect scaling
up of recently commissioned PSA terminal (2.4mn TEU capacity) to drive port
volume growth at the west coast port.
port reported 2 per cent YoY decline at ~128k TEUs in Aprí18. The competition
from nearby ports is expected to further intensify as increasing ship calls at
Katupalli and Kípatnam ports led to healthy volume growth of 42 per cent and 89
per cent YoY, respectively, in FY18. Furthermore, south ports capacity
(Chennai, Kattupalli, Krishnapatnam and Ennore) increased to 5.4mn TEUs within
a stretch of 200 KM coastline post commissioning of Ennore port.
port reported 19 per cent YoY growth for the month while Cochin port reported
volume growth of 9 per cent YoY on the back of increasing port efficiency.
Kolkata & Haldia and Vizag port reported 10 per cent and 14 per cent YoY
volume growth respectively, for the month led by higher Nepal bound containers.
shipping spot rates for FEU (constituting key global trade routes) remained
subdued on account of trade uncertainties. However, spot shipping rates for FEU
jumped 22 per cent sequentially in first week of May led by general hikes by
some carriers from May 1.
Amid changing trade policies, container
imports to the U.S. is expected to maintain steady growth as top items weren't
included in the proposed list of tariffs on Chinese products. Expect
container-shipping freight rates to increase driven by continued demand
strength even as a supply glut continues to mar a stronger rate recovery.
container volume grew ~13 per cent YoY to 3.7mn tons in Aprí18 while lead
distance remained flat YoY at 800 KMS. EXIM lead distance decline was arrested
for the first time in over two years and it is expected to hover over similar
levels over the medium term.
container volumes witnessed ~4 per cent YoY decline at 0.9mn tonnes in Aprí18.
The average lead distance remained flat at 1,210 KMS.
rates declined ~5 per cent in Aprí18 over Marí18. This comes on the heels of a
~4 per cent m-o-m increase in freight rates in Marí18. Industry sources
indicate truck overloading relaxation coupled with lower agri produce movement
across the country as key reasons for declining freight rates. April has
traditionally witnessed m-o-m decline in freight demand due to higher movement
of goods in March (fiscal year end). The weakness could have been further
accentuated due to rollout of e-waybill from Aprilí18.
rental (for 25.2 ton GVW) from Delhi to Mumbai was Rs 87,200 as at May 01, 2018
vs. Rs. 91,800 as at Apr 01, 2018 (down 5 per cent) and Delhi to Chennai was
Rs. 122,100 vs. Rs. 129,200 (down 5.5 per cent).