Chennai Port Container Terminal Choked: Trade in Chaos
Chennai, India – A severe congestion crisis is crippling the operations of Chennai International Terminals Private Limited (CITPL), a key container terminal within the Chennai port. The situation has led to a backlog of over 12,000 containers, causing significant disruptions to trade and logistics.
Industry sources point fingers at a combination of factors, including manpower shortages, inadequate infrastructure, and the recent surge in container traffic due to the Red Sea crisis. CITPL, a subsidiary of Singapore’s PSA International, attributes the problem primarily to the bunching of container ships and the aftermath of the Red Sea crisis.
Container Chaos
The impact on trade is severe. Truck drivers are facing delays of up to 6-8 hours to obtain essential documents, compared to a mere 20 minutes under normal conditions. The terminal’s infrastructure is struggling to cope with the increased volume of containers, leading to long queues of vehicles both inside and outside the port.
“The situation has been deteriorating for the past three months,” said RN Shekar, President of the Chennai Custom Brokers Association. “Evacuation of containers to freight stations has doubled in time, and importers are facing uncertainty in accessing their cargo.”
S Sathyanaraayanan, Chairman of the Chennai Chapter of the National Association of Container Freight Stations, echoed the concerns, highlighting the significant increase in trailer turnaround time due to terminal delays.
CITPL Responds
In a statement, CITPL acknowledged the challenges posed by the Red Sea crisis, which has led to irregular vessel arrivals and increased congestion. The terminal operator outlined measures to address the issue, including increasing equipment, optimizing resources, and coordinating with shipping lines to stagger vessel arrivals.
However, industry experts believe the problems run deeper. J Krishnan of Natesa Iyer LLP emphasized that while the Red Sea crisis exacerbated the situation, underlying issues such as manpower shortages, inefficient processes, and infrastructure limitations are also contributing factors.
Economic Impact
The congestion at Chennai port has far-reaching consequences for the Indian economy. Delays in cargo movement lead to increased costs for businesses, including demurrage and detention charges. Moreover, the disruption in supply chains can impact the availability of goods and potentially lead to price hikes for consumers.
As the situation continues to unfold, stakeholders are calling for urgent measures to alleviate the congestion and restore normalcy at the Chennai port. The crisis highlights the need for robust infrastructure and efficient operations to handle increasing trade volumes and withstand external shocks.
