India addresses container shortage and expands port capacities

India’s Ports Minister Sarbananda Sonowal confirmed there’s no acute container shortage, attributing delays to the Red Sea crisis. He highlighted a significant increase in port capacities across the country and noted that promoting Indian container ownership is a key solution. These steps aim to address global shipping challenges and support trade.

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India’s Ports, Shipping, and Waterways Minister Sarbananda Sonowal assured the Rajya Sabha on Tuesday that the country is not facing an acute shortage of containers for maritime trade. He stressed that the Directorate General of Shipping is promoting the ownership and operation of containers by Indian entities as a long-term solution.

Sonowal attributed recent difficulties to the Red Sea crisis, which began in late 2023 and continued into early 2024. This crisis led to a significant diversion of ships from the Suez Canal to the Cape of Good Hope, increasing transit times by 35 to 40 percent. As a result, delays at major global ports increased, and charter hire costs rose.

Addressing a question about port capacity expansion, Sonowal noted substantial growth across all 12 major ports in India from 2014-15 to 2023-24. For example, Syama Prasad Mookerjee Port saw a 31.29 percent increase in capacity, while Paradip Port’s capacity rose by 141.86 percent. Other ports, including Chennai, Cochin, and New Mangalore, also reported significant increases. Overall, Sonowal stated that the total capacity of these ports grew by 87.01 percent, reflecting the government’s commitment to improving maritime infrastructure. This expansion demonstrates significant efforts to boost India’s port capacities and support maritime trade.

“There is no acute shortage of containers,” Sonowal reiterated. He explained that promoting container ownership and operation by Indian entities is viewed as a sustainable solution for potential future shortages.

The minister’s comments provide reassurance about India’s container availability for maritime trade despite recent global shipping challenges. The government’s proactive measures aim to mitigate any adverse impacts on trade logistics. In summary, while recent global events have posed challenges, India has taken steps to ensure container availability and significantly expand port capacities. These efforts highlight the country’s commitment to enhancing its maritime infrastructure and trade capabilities.