Mormugao port moves to shield exporters, secure supply chains amid West Asia crisis

Panaji: With geopolitical tensions around the Strait of Hormuz continuing to disrupt global maritime trade, the Mormugao Port Authority has moved to prioritise the berthing of vessels carrying essential commodities and ensure that exporters shipping cargo to countries in West Asia receive immediate financial concessions at the point of billing, without having to wait for reimbursement.

The two measures, communicated through consecutive trade notices issued within five days of each other, signal a coordinated response by the port and the ministry of ports, shipping and waterways to insulate Indian trade from the cascading effects of the West Asia crisis.

The port authority informed all port users, shipping agents, stevedores, vessel operators, importers, and exporters that vessels carrying essential commodities, specifically crude oil, LNG, LPG and fertilisers, would be accorded priority berthing, wherever feasible, based on the request or recommendation of the nodal ministry concerned.

The notice, issued by MPA’s traffic manager Jerome Clement, followed a ministry communication that flagged that the evolving situation around the Strait of Hormuz may impact the movement of energy cargoes and critical supplies, particularly those originating from or destined for the Gulf region.

Stakeholders were asked to ensure timely submission of all statutory documents and compliance with pre-arrival formalities, while the port assured that minor documentation-related issues would be handled in a facilitative manner, without compromising safety, security or environmental standards, so as to avoid undue delays.

The port authority issued a second trade notice addressing a more immediate commercial concern for exporters. The notice stated that any concessions or waivers applicable to export cargo destined for countries in West Asia shall henceforth be passed on directly to exporters at the time of billing.

Crucially, the notice declared that the earlier practice of initially charging exporters the full amount and subsequently reimbursing applicable concessions stands discontinued with immediate effect. The change eliminates a cash flow burden that exporters trading with the Gulf region had long flagged as a practical hardship, particularly during periods of trade disruption.