Mundra Container Transporters Halt Operations Over Adani Ports’ Empty Box Policy

Around 1,500 container transporters serving Mundra Port have halted container movement after Adani Ports and Special Economic Zone Ltd (APSEZ) decided to handle and store empty export-import containers within the port from September 1. The move has triggered a strike by transporters and empty container depot operators, raising concerns over delays in container movement and logistics operations.

The Kandla Mundra Container Transport Welfare Association issued a trade notice stating that its members had stopped picking up all types of containers with immediate effect. From midnight on September 2, association members also planned to keep their vehicles off the road until further notice.

The transporters said the decision could disrupt container movement, pick-up and delivery operations, while extending their support to empty container depot operators affected by APSEZ’s new arrangement.

APSEZ shifts empty container handling inside Mundra port

From September 1, empty container yards located outside the port limits will be frozen, with shipping lines being asked to nominate empty containers to designated yards within the Mundra port SEZ limits.

APSEZ said the move is intended to improve the overall logistics ecosystem by reducing road congestion and empty-vehicle turnaround time. The port operator also expects the change to reduce container movements, optimize logistics costs, lower truck travel and associated emissions, and improve container inspection, control and compliance.

Shipping lines and depot operators oppose the move

The decision has faced criticism from the Container Shipping Lines Association (CSLA), which represents major international shipping lines. The association has urged APSEZ to withdraw the restriction, arguing that existing Central Board of Indirect Taxes and Customs (CBIC) provisions do not restrict shipping lines from nominating their containers to designated depots.

CSLA Executive Director Sunil Vaswani said the restriction on moving empty containers to storage facilities outside the port could create logistical hurdles and increase costs. The association has called for the advisory to be withdrawn.

The Mundra Empty Container Yards & Allied Services Provider Association has also opposed the move and suspended operations from midnight on August 28 while seeking withdrawal of the restriction. Its president, Harshyamsinh Parmar, described the measure as a serious concern for the continued viability of empty container depot facilities.

Empty depots remain important to shipping operations

Empty container parks and depots handle empty EXIM containers arriving through import manifests, en-block movements or following destuffing by importers. These containers remain under the control of their respective shipping lines before being positioned for export, either in laden or empty condition.

The depot association said these facilities operate under commercial and operational arrangements agreed with shipping lines. It argued that shipping lines, as owners or lawful custodians of the containers, should determine where empty containers are stored, inspected, repaired, maintained and subsequently positioned.

According to the association, the blanket restriction on empty containers moving to shipping-line-nominated depots is unwarranted and disproportionate and could disrupt established logistics practices.

Logistics disruption risk rises

The ongoing dispute between APSEZ, transporters, shipping lines and empty depot operators could affect container movement around Mundra if the operational stoppage continues. While APSEZ maintains that bringing empty container handling inside the port will create a more efficient and integrated system, transporters and depot operators argue that the restriction could reduce operational flexibility and increase logistics difficulties.

The immediate focus is now on whether discussions between the stakeholders can resolve the dispute and restore normal container transport operations at Mundra.

Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.