The Red Sea crisis has resulted in longer voyage spans, increased freight rates, and potential delays for Indian container cargo. Despite this, capacity liners are prepared to expand container capacity to mitigate the impact. Food grains, perishable items, and low-value cargo will be mostly affected by the increased transit times, estimated to account for 10-15% of container volumes.
The rating agency forecasts an 8% growth in container volume in India to 342 million metric tonnes in FY25, despite potential challenges from a prolonged Red Sea crisis. Monitoring charter rates and vessel additions by shipping lines will be crucial ahead. India’s maritime sector includes 12 major ports and over 200 non-major ports along the 7,500 km coastal line. Cargo throughput at Indian ports hit a record high of 1539 MMT in FY24, with nearly 7% growth from FY23.
Cargo throughput at Indian ports showed healthy growth between FY21 and FY24, with a CAGR of 7%. This growth was driven by factors such as resilient economic activity, increasing demand for commodities, declining shipping freights, and post-pandemic traffic recovery. Crude oil, coal, and containers dominate cargo at Indian ports, making up three-quarters of total throughput. CareEdge Ratings predicts a CAGR of 3-4% for coal cargo throughput between FY24 and FY26, with an expected increase in the share of coastal cargo.
