Cargo Volumes At Indian Ports Decline In August On Lower Liquid And Coal Volumes

Cargo handled by Indian ports declined in August over last year after one month of growth on global trade tensions and slowing domestic consumption.

A fall in liquid cargo—oil and gas-related products—and coal volumes, which together contribute nearly three-fifth of the total cargo volumes in India, led to subdued cargo volumes in August. Volume growth at India’s ports increased by only one percent in August, according to a Goldman Sachs report, largely led by container, iron ore, fertiliser and other cargo volumes. Most of these positives were offset by negative trends in coal, oil and gas-related product volumes.

Ports across the country handled 576.2 lakh tonnes of cargo in August.

Volumes of liquid cargo—oil and gas-related products—comprising nearly 40 percent of total cargo volumes, declined for the second consecutive month. Coal volumes fell for the fourth consecutive month to 104 lakh tonnes in August. Coal volumes dropped17 percent over last year—the most in at least last 20 months.

The biggest positive came from container volumes which has been rising for the second consecutive month. Container volumes grew eight percent compared with last year—the highest in last three months. Strong container volumes, according to Goldman Sachs, augurs well for Container Corporation of India Ltd., but weakness in other cargo volumes offset the impact for Adani Ports and Special Economic Zone Ltd.

The brokerage has a ‘Buy’ rating on both the stocks.

Iron ore and fertilizer volumes grew the highest over last year. While iron ore volumes rose 75 percent—highest in at least the last 20 months—fertiliser volumes grew as much as 30 percent, the most in eight months.