Cargo traffic dips to 5% in Apr-Oct

NEW DELHI: Global slowdown has taken its toll on the cargo traffic (export and imports) at the ports. According to Indian Ports Association (IPA), almost all ports have shown a decline in cargo growth. IPA figures show, this year's growth rate in cargo traffic was only 5% in April-October as against last year's 14%.
The sluggish trend extends to most categories of cargo including petrol and coal.Iron ore and container traffic has been worst hit.
The growth rate in petrol and oil related cargo has slipped from 14% last year to 3% this year in the same period. Similarly, coal cargo has declined from 19% to 4%. Processed food and flowers etc, grew only 1% as compared to 5% last year. Janardhan Rao, MD of IPA said, iron ore exports have dipped due to the decline in demand from China and Japan.
But, international prices of iron ore reflected in the Londons Baltic Dry Index also has fallen sharply in the last three months and added to the woes. The index fell by 90% from 11,000 in May to 814 now. Besides, the ad valorem duty on exports has also fuelled this trend.