Container volume likely to grow 8% to 342 million tonnes in FY25: Report

Container volume in India is anticipated to grow by 8% to 342 million tonnes this fiscal year despite potential disruptions from the prolonged Red Sea crisis, according to CareEdge Ratings. The upcoming connection of the dedicated freight corridor to Jawaharlal Nehru Port in FY26, along with port capacity expansions, is expected to drive medium-term growth in container volume. CareEdge Ratings projects that coal cargo throughput at ports will grow at a CAGR of 2-3% between FY24 and FY26, despite an expected decline in coal imports by 3-4% due to increased domestic coal production.

The share of coastal cargo is forecasted to rise from 34% in FY23 to 42% by FY26, driven primarily by coastal coal movement along the eastern coast and supported by added capacities and synergistic benefits. The government's focus on infrastructure for sectors like steel and cement also underpins this expected increase. India's trade with European countries, North Africa, and the Americas, which rely heavily on the Suez Canal route, accounts for about 35% of the country's total foreign trade, primarily in the container segment. According to CareEdge Ratings, significant changes in charter rates affecting cargo volumes and vessel additions by shipping lines will be critical factors to monitor going forward.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.