Indian ports are finding it difficult to take advantage of rising demand for container storage at alternative hubs as ongoing geopolitical tensions linked to the Iran conflict continue to disrupt regional maritime trade.
Industry sources say the storage yard at Vizhinjam International Seaport — a container transshipment gateway — is already nearing capacity with both empty dry containers and reefers filling available space. This congestion has prevented the port from expanding container storage services despite strong interest from shipping lines looking for alternative hubs as traditional Gulf routes remain uncertain due to the conflict’s impact on shipping patterns.
Shipping and logistics stakeholders report that the lack of available land or space for additional container yards has hampered Indian ports’ ability to capitalise on this demand. Although the port operator has requested more land from the Kerala government to expand storage capacity, acquisition and handover of additional space is still pending.
The challenge comes amid broader supply chain pressures caused by the intensifying conflict involving Iran and other regional actors, which has disrupted traffic through pivotal maritime chokepoints like the Strait of Hormuz. Maritime insurers have pulled war-risk cover for Gulf transit routes and carriers have been rerouting or delaying sailings — a situation pressuring ports, exporters and global shipping networks alike.
Ports have also been dealing with high volumes of export containers piling up at major Indian gateways as scheduled sailings to West Asia stall, adding to storage and operational strain. To alleviate this, the Ministry of Ports, Shipping and Waterways has directed ports to allow temporary storage of Middle East‑bound cargo and consider waiving or reducing related charges during the crisis period. The ministry has also issued an SOP to prioritise cargo movement and provide additional storage where needed.
Despite these government interventions, the limited physical capacity at ports like Vizhinjam and others continues to constrain their ability to monetise the surge in container storage demand, forcing carriers and exporters to seek alternative arrangements or bear higher logistics costs until regional shipping conditions stabilise.
