Export-import cargo movement at Mundra Port is facing disruption following a strike by empty container depot operators and transporters over a new mechanism introduced by Adani Ports and Special Economic Zone Ltd (APSEZ) for handling and storage of empty containers.
Under the new system, effective September 1, empty export-import containers are to be handled and stored at depots located within the port area, replacing the earlier practice of delivering empty containers to shipping-line-nominated depots outside the port.
The change has triggered protests from empty container park operators. The Kandla Mundra Container Transport Welfare Association has stopped transporting both loaded and empty containers, with its members withdrawing vehicles from operations until further notice. Empty container parks at Mundra collectively handle around 3.25 lakh containers a month.
The standoff has begun affecting export-related activities, with container shipping lines reporting concerns over the availability and timely positioning of empty containers.
The Federation of Indian Export Organisations (FIEO) has sought the intervention of the Union Ministry of Ports, Shipping and Waterways to ensure uninterrupted EXIM cargo movement. In a September 2 communication to Ministry Secretary Vijay Kumar, FIEO Director General and CEO Dr Ajay Sahai urged the government to consider maintaining the status quo or putting suitable interim arrangements in place until the dispute is resolved.
Sahai cautioned that exporters are already facing high ocean freight rates, container shortages and limited shipping capacity. Any further disruption at Mundra, one of India’s key container gateways, could result in missed vessel cut-offs, contractual penalties, Letter of Credit discrepancies, delayed payments and reputational damage for exporters.
FIEO suggested that if the new APSEZ system is considered operationally more efficient, its implementation should follow stakeholder consultation and a reasonable transition period.
Meanwhile, APSEZ has moved ahead with the new arrangement. APSEZ Managing Director Karan Adani on Wednesday inaugurated around 400 electric tractor-trailers, which will be used to transport empty containers to depots located within the port area.
A meeting between APSEZ and the Mundra Empty Container Yards & Allied Services Provider Association (MECYASA) on Tuesday failed to resolve the dispute. While MECYASA sought continuation of the existing system, APSEZ reportedly advised the association to raise the matter with shipping lines.
MECYASA President Harshyamsinh Parmar said the association would continue its peaceful protest against the APSEZ trade advisory, citing its impact on empty container yards and the wider shipping and logistics sector.