India: Ministry of Ports, Shipping, and Waterways outlines proactive approach to address container shortage

The Red Sea crisis, which began in late 2023 and continued into early 2024, has significantly impacted global maritime trade. This disruption has diverted ships from the Suez Canal to the Cape of Good Hope, extending transit times by 35-40%. This diversion led to extended shipping routes, delays at major ports, and higher freight rates due to increased fuel consumption. Consequently, global supply chains faced disruptions, impacting trade efficiency and raising costs across multiple industries.

In response, India's Ports, Shipping, and Waterways Minister, Sarbananda Sonowal, assured the Parliament on Tuesday that the country is not experiencing a critical shortage of maritime containers. He emphasised that the Directorate General of Shipping is actively promoting the ownership and operation of containers by Indian entities as a long-term solution.

Govt measures to enhance container availability

Sonowal has confirmed that there is no acute container shortage. He has outlined the government's proactive approach to addressing container issues and expanding port capacities. The Ministry of Commerce and Industry, through its Service Improvement Group, is collaborating with shipping lines, port authorities, and export-import associations to manage container availability. Measures include repositioning empty containers globally, deploying safety convoys for disrupted routes, and addressing inland container depot congestion with the Container Corporation of India.

The Directorate General of Shipping is actively encouraging Indian entities to own and operate containers as a sustainable solution to future shortages. To further enhance container availability and efficiency, the government is developing advanced tracking and tracing systems through the Unified Logistics Interface Platform (ULIP) and Logistics Data Bank (LDB).

ULIP and LDB work together to enhance logistics efficiency. ULIP integrates data from various stakeholders into a centralised system, improving real-time tracking, streamlining customs clearance, and reducing manual paperwork. This leads to faster cargo movement, better coordination, and increased transparency.

Meanwhile, LDB offers real-time tracking and detailed visibility of container movements, optimising container usage and reducing delays. Together, these systems enable more efficient container allocation and retrieval, ultimately improving overall supply chain responsiveness and availability.

These initiatives are designed to streamline container turnaround times, optimise logistics, and improve overall container management.

Port capacity expansion

There has been rapid expansion of port capacities across India and the minister has highlighted in the Upper House that significant growth between 2014-15 and 2023-24 has taken place. Syama Prasad Mookerjee Port in Kolkata has increased its capacity by 31%, Paradip Port by 142%, and Kamarajar and V.O. Chidambaranar ports by 154% and 150%, respectively. Chennai, Cochin, and New Mangalore have also seen notable expansions, while Deendayal Port in Gujarat has witnessed an increase of 122% in capacity.

Overall, the total capacity of the 12 major ports has surged 87% during the said period reflecting the government's commitment to enhancing maritime infrastructure. These efforts are part of a broader strategy to address maritime challenges, support exporters, and improve logistics efficiency.