Little impact on Exim trade at Thoothukudi Port

According to T Johnson, president of the Indian Chamber of Commerce and Industry, Thoothukudi, China was much reliant as several manufacturing companies would normally import required volume of raw material to Thoothukudi seaport.

Now, the manufacturing sector has slowed down production in the wake of such unhealthy trend in China as they could hardly get raw material. Many of the cargo fleet had been skipping China and cargo volumes were trans-shipped through other port destinations.

Since several cargo vessels suspended its voyage following the coronavirus outbreak in China, ocean freight would surge, capitalising on the situation. Besides, many companies in China too closed down.

The Tirupur-based garment sector in Tamil Nadu would normally import cargo such as buttons, polyester fibre and other relevant items from China under the logistic support of VO Chidambaranar Port, Thoothukudi, and finished goods would be shipped through this seaport to various destinations, Johnson said.

As for JP Joe Villavarayar, former president, Tuticorin Ship Agents Association, cargo fleet bound for European countries often had blank sailing, of late, owing to uncertainty in China. Even mother vessels up to Colombo, the most-sought-after destination for shippers from Thoothukudi seaport, were not hauling adequate volume. If such situation prolonged, frequency of mother vessels calling seaports would drop and sailing schedule would be regulated and rationalised in coming days, he said.

The impact could not be felt as of now, but later, J David Raja, senior vice-president, St John Freight Systems Limited, Thoothukudi, said. The stakeholders of Exim trade wholly were much dependent on China, which has an annual average import volume of Rs 70 billion dollars, he said.

T Vel Shankar, president, Tuticorin Stevedores Association, said some containers with import cargo had been quarantined in the Thoothukudi port owing to coronavirus impact.

Normally, Chinese merchant vessels calling the port here would haul machineries and synthetic chemicals and industries relying on such material could be affected if required volume could not be imported, Pon Venkatesh, former president, Tuticorin Custom House Agents Association, said.

S Sakthivel, executive secretary, Tirupur Exporters Association (TEA), said there’s no downfall in production as of now. Raw material imports such as dye and chemicals were made with the logistic support of the VOC Port to cater production. If the stakeholders need to look for alternative to China, then Hong Kong and Taiwan would be options open to them. However, it would not be cost-effective. Other items such as label tag, buttons and zips were air-shipped often from Chennai and Bengaluru.

About 55 to 60 per cent of the total production of knitted garments from Tirupur was being shipped through VOC Port to various destinations. However, the coronavirus would not impact this manufacturing sector immediately as stocks had been maintained with, he said.

VOC Port Trust Chairman TK Ramachandran, when contacted, told DT Next that there’s no impact on any import or export activity including container handling operations due to coronavirus. No container is isolated in the cargo handling terminal for this purpose. However, year on year, growth of the VOC Port achieved is above four per cent and similar growth is reflected since January this year, the chairman said.