The cargo is moving, says India as it taps options to beat Hormuz choke

Speaking to reporters, Opesh Kumar Sharma, director in the ministry of ports, shipping and waterways, said India and West Asian countries are taking these options to ensure least interruption in trade between the Gulf region and India, including fuel shipments, at a time when the Strait of Hormuz, a key channel for 20% of global oil and gas trade, remains largely closed.

Alternate shipping services have been operationalized in the backdrop of the West Asia crisis, he said, with shipping lines including CMA CGM (Compagnie Maritime d'Affrètement - Compagnie Générale Maritime), Unifeeder and AP Moller-Maersk connecting Indian ports such as Jawaharlal Nehru Port Authority, Mundra and Hazira to Sohar (Oman), Fujairah (UAE), and Khorfakkan (UAE) in West Asia.

"So, there are many places which have been activated. The cargo is moving,” he said.

The industry and the government have noted issues related to trade routes, and the reduction in congestion at the ports indicated “normalization”, Sharma said.

West Asia and North Africa (Wana) is a key region for India for energy imports and non-oil exports. In FY25, India’s merchandise exports to the major Wana markets exceeded $64 billion, while total bilateral trade crossed $216 billion, according to the commerce ministry.

The US-Iran war, which has led to a blockade of the Strait of Hormuz, has constrained flow of goods to ports in the Persian Gulf, prompting exporters to opt for alternate trade routes, often at higher costs.

India's exporters, particularly micro, small and medium enterprises (MSME), have been facing rising freight costs and cargo delays across the Gulf region. MSMEs comprise 48% of the country’s exports.

With an annual capacity of 68.2 million tonnes, it is India's largest integrated refinery campus. Of this about 33 million tonne capacity is meant for domestic supplies and another 35.2 million falls under the special economic zone category that caters to export demand.

The shutdown will start after Nayara Energies' Vadinar refinery resumes operations after its 35-day maintenance, Sharma said. The government is trying to ensure all refineries in the country do not go on annual maintenance shutdowns at the same time, in a bid to avert any constraints in domestic fuel output and supply, she said.

The joint secretary also said discussions were being held to build storage facilities for liquefied petroleum gas (LPG), and also that automobile fuel prices had not been hike till date even amid war-led disruptions.