The war in West Asia has taken a toll on port operations along the nation’s west coast, with a noticeable decline in cargo volumes, including crude consignments. For instance, Cochin Port, the only port in Kerala that handles crude oil and liquefied petroleum gas (LPG) consignments, has witnessed a 20-30% drop in cargo volumes since the conflict began.
The port handled only 6.8 lakh tonnes of crude in March (up to March 16), compared to its average monthly volume of around 15 lakh tonnes. Crude accounts for nearly 60% of the total cargo handled at the port. In the absence of shipments from West Asia, the port has predominantly been handling crude consignments from Russia this month. So far, six oil tankers have called at the port.
According to sources, the port is expected to see a decline of nearly one-third in its business this month due to the drop in consignments, including general cargo. No LPG consignment has reached the port so far this month.
The port has also recorded a decline in container volumes, which account for roughly 30% of its total cargo. However, on the positive side, the port witnessed a sharp rise in bunkering activity. Bunkering operations have risen by 30-40% this month, largely due to disruptions in the Strait of Hormuz caused by the retaliatory strikes on shipping by Iran. This has compelled shipowners to take longer routes, leading to a substantial rise in bunker demand at ports along the west coast.
The Vizhinjam International Seaport has also started ship-to-ship bunkering operations. However, the demand for bunkering is less in Vizhinjam compared to the Cochin port with the former catering to only a specific number of ships. The port is also not handling crude or LPG cargo due to the absence of dedicated berths, including liquid berth, which are planned in the second phase of its development. Space constraints, including limited container storage capacity, have forced the port to turn away the calls of some shipping lines, sources said.