India: Adani Gangavaram port declares force majeure

Adani Gangavaram Port (AGPL) have declared force majeure due to ongoing employee agitation, disrupting cargo handling and associated operations since 10 April 2024.

Workers at Gangavaram port are currently on strike, advocating for equitable wages comparable to their counterparts at the Visakhapatnam Port Authority (VPA). In addition to wage parity, they are calling for a comprehensive compensation package of INR 40 lakh for fatalities that occur on duty, as well as allowances for dust, dirt, and night duty.

The resulting breakdown in operations has affected the entire logistics chain, posing serious risks to human lives and port infrastructure. AGPL deems this situation beyond its control, declaring it a 'Force Majeure' event. During this period, AGPL disclaims responsibility for vessel demurrages and other consequential losses, including pre-berthing delays and discharge rate guarantees for vessels.

Efforts to resolve the issue commenced immediately, with AGPL keeping all communication channels open with the agitators and working tirelessly to find an amicable solution. However, at this preliminary stage, the timeframe for improvement remained uncertain, with indications suggesting that several more days might be required.

The port authorities, along with the Collector, have attentively recorded the concerns presented by the workers' representatives and have pledged to swiftly address these issues.

The situation has stoked a rise in demand of material at Vizag port. However, immediate impact on price change is yet to be observed. Imports at Gangavaram dropped m-o-m to 1.3 mnt in March as against 1.4 in February. Adani Power contributes to highest imports which have fallen m-o-m to 0.14 mnt in March as against 0.56 mnt in February.