The Vizagapatnam Chamber of Commerce and Industry (VCCI) has declared Force Majeure in the Vizag and Gangavaram port between 5 to 19 May’21 due to the partial lockdown announced by Andhra Pradesh government amid rising COVID cases in the state.
The Force Majeure has come into force despite port operations deemed as essential services as VCCI stated that conducting normal operations at port is impossible in the ongoing scenario.
Will port operations stop?
Force Majeure is usually imposed in an unforeseeable circumstance that prevent the party from fulfilling a contract. However, the Force Majeure announced at ports is unlikely to make a huge impact on the port operations and will only relieve ports to perform any contractual obligations.
Market participants have informed us that due to rise in number of people being infected with COVID at ports, the loading and unloading activities there are being hampered restricting goods’ movement and increased demurrage cost.
Moreover, if restrictions continue beyond 19 May’21 and the COVID-19 situation in the state continue to deteriorate, upcoming shipments are likely to be adversely impacted.
Ports of major importance
Both Vizag and Gangavaram ports located in east coast of India are of prime importance and are capable of handling capesize vessels.
Gangavaram port which is recently taken over by Adani Ports is the deepest all-weather port in India. Among its nine berths – with a total cargo-handling capacity of 62 to 64 mn t per annum. The port majorly handles imported coal vessels coming from countries like South Africa, Australia, U.S., and Indonesia.
Vizag is a state-owned port and one of 13 major ports in India It is India’s third largest state-owned port by volume of cargo handled and largest on the Eastern coast. It has a handling capacity of 127 mn t per annum. The port handles coal as well as other steel products’ vessels.
Commodities imported at ports in CY20
| Commodity | Gangavaram | Vizag |
| Coal | 18.8 MnT | 14.5 MnT |
| Ferro Alloys | – | 2.12 MnT |
| Stainless steel scrap | – | 0.08 MnT |
| Scrap | – | 0.08 MnT |
| Alloy bar and rod | – | 1144 MT |
| DRI | – | 948 MT |
| Pig Iron | – | 155 MT |
| Galvanised steel | – | 142 MT |
Commodities exported at ports in CY20
| Commodity | Gangavaram | Vizag |
| Fines/Lumps | 2.48 | 6.84 |
| Pellet/Concentrate | 1.40 | 0.54 |
| Billet | 0.18 | 0.09 |
| Pig Iron | 0.19 | 0.02 |
| Ferro Crome | – | 0.56 |
| Flat-Hr | – | 0.33 |
| Ferro Silico Manganese | – | 0.26 |
| Non Alloy – Bar And Rod | 0.03 | 0.08 |
| Ferro Manganese | – | 0.09 |
| Galvanished Coated Flat Product 600Mm Or More | – | 0.04 |
| Wire Of Alloy Steel | 0.03 | 0.00 |
| Angle,Shape,Section | – | 0.02 |
| Other Non Alloy – Bar And Rod | – | 0.02 |
| DRI | – | 0.01 |
| Non Aloy – Bar And Rod-Coil | – | 0.01 |
| Flat Rolled 600 Mm Or More Silicon Electrical Steel | – | 0.00 |
| Flat-CR | – |
Qty in mn t
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