Blackouts at Kandla, Mundra ports amid India-Pakistan conflict; rice, chemicals trades unaffected

There were blackouts at key west coast Indian ports of Kandla and Mundra late-May 8, briefly halting operations, sources said.

While operations have since resumed, market participants expect blackouts over May 9-10, although there has been minimal impact on commodities.

"The blackout last night in the entire Kutch region was per government directives. Today evening too, if the government sends any instructions," a source said.

"We are hearing movements have been curtailed, operations stop 6-7 pm and resume by 6 am," a Mumbai-based source said.

Participants expect an impact on container shipping only if the blackouts extend to more than a week.

"Yesterday, some people were not able to get their containers gated in, as of now the situation is fine, but say if it goes for a week, we will see berthing windows get shorter and probably a congestion," an India-based source said May 9.

Platts, part of S&P Global Commodity Insights, assessed TCR 33 -- West Coast India to the Middle East -- at $100/TEU, down $40/TEU day over day, and PCR 33 --- West Coast India to the Middle East -- at $175/FEU, down $75/FEU on May 8.

According to S&P Global Commodities at Sea data, there were 11 ships at Mundra, including 9 container ships and two chemical tankers as of May 9. At the Kandla port, there were seven, including six chemical tankers and a container ship.

Chemicals markets on watch

Petrochemicals buyers and traders in India are keeping a close watch on the supply chain as cargo berthing, discharge and shipments could get delayed amid heightened tensions between India and Pakistan.

There was not much impact on chemicals shipments at Kandla and Mundra due to the blackout as operations resumed normalcy early-May 9, but there could be delays in cargo discharging and berthing operations if the situation persists, traders and importers said.

Blackouts were implemented in several areas along the India-Pakistan border, according to media reports.

Demand from northern Indian end-users may also taper as tensions mount.

"If industrial activity in the north is impacted for long, definitely end-user consumption would be impacted," a methanol importer said.

Traders said for now, there is adequate inventory of key petrochemicals in the country, and the delays may not have an immediate impact.

"Our plant is operating normally, but methanol traders are holding on to prices due to delays in unloading of material and an inventory gap," said a formaldehyde producer.

The gap could aggravate if port berthing operations get affected, he said.

"We may also see a rise in war-risk premiums in such situations," another trader said.

Platts assessed CFR India methanol at $269.50/mt May 9, down $1/mt day over day.

Platts assessed CFR India butyl acrylate stable from the last assessment at $1,170/mt on May 9. It assessed CFR South Asia acetic acid down $7.50/mt on the week at $362/mt May 8.

Rice trade resumes

Mundra and Kandla are major ports for Indian rice exports, with Mundra being the top choice for basmati rice and Kandla for non-basmati white rice.

India exported 2,928,949 mt of rice from the Mundra port in 2024-25 (April-January), down 3%, and 2,382,669.6 mt from the Kandla port, up 62% year over year, according to The Agricultural and Processed Food Products Export Development Authority.

A shipping company owner out of Mundra said, "From 2 am to 6:30 am May 9, Mundra port had closed down, but now the operations have resumed. There were minor disruptions due to the blackout. We saw that the lights were on at the Mundra port, however, ancillary services were down."

"Where we are not expecting major disruptions, birthing time for vessels is likely to be delayed by one-two days. Other than that, there has been no official notice by the Indian government to shut the ports as of now."

A rice exporter based in Raipur confirmed that operations have resumed in Kandla and Mundra ports and their cargo movement in containers is happening.

However, other participants noted that since this is a developing situation, the market had yet to react to it.

If the situation escalates and the west coast ports face temporary closures, Indian rice prices for Kandla and Mundra delivery will decline, while those for JNPT and east coast ports will rise, said a Gurgaon-based rice exporter.

It is likely freight from the west coast would also rise in such a scenario, as many rice exporters would book ships in panic, the exporter added.

Platts assessed India Parboiled 5% rice at $369/mt FOB, down $15/mt month over month due to fresh crop supply pressure.

India white rice 5% broken was assessed at $372/mt FOB, up $12/mt month over month amid firm local prices.