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‘Own terminal advantages’ seem to be benefiting larger container lines serving Indian trades

The Red Sea crisis has significantly impacted container supply chains, with larger container lines operating in Indian trades reportedly benefiting from 'own terminal advantages.' Mediterranean Shipping Co. (MSC) and CMA CGM, in partnership with the Adani Group, operate container terminals at Mundra Port, India's primary container gateway.

This strategic investment has ostensibly provided these carriers, especially MSC, with a competitive edge over smaller lines, which have faced schedule disruptions and vessel diversions related to the crisis. Consequently, there have been instances where MSC vessels received priority berthing at Mundra, affecting other carriers' scheduled services. This situation has forced smaller carriers to seek alternative berthing options at Nhava Sheva Port, which has seen an increase in container ship calls and transhipment volumes, indicating a shift in port utilization. MSC's significant transhipment activity at Mundra has contributed to the port's rapid container volume growth, with Mundra recording a 15% higher throughput than Nhava Sheva in the fiscal year 2023-24. Furthermore, MSC and CMA CGM's investments in other Adani Group-operated terminals across southern India, including acquisitions and concession rights, underscore the strategic importance of operational efficiencies and network leveraging in their business models.

Source: container-news.com

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