Mundra empty-container disruption puts new depot policy under scrutiny

Disruptions to empty-container movements at Mundra have raised concerns among shipping lines, transporters and exporters following the implementation of a new policy requiring shipping lines to nominate empty containers to designated facilities within the Mundra Port and Special Economic Zone (SEZ) area.

The change took effect on September 1 after APSEZ froze empty-yard codes for facilities located outside the port limits. APSEZ has said the measure is aimed at addressing misuse of empty-depot codes, strengthening security, reducing road congestion and improving vehicle turnaround times.

However, industry stakeholders have raised concerns over whether sufficient capacity and operational arrangements were in place before the existing system was withdrawn.

What is causing the disruption at Mundra?

The disruption follows the suspension of operations by independent empty-container depot operators from August 28, ahead of the September 1 implementation of the new arrangement.

Shipping lines, transporters and cargo owners have subsequently faced restrictions affecting the release and return of empty containers. The Mundra Customs Brokers’ Association has estimated that around 5,000 containers a day are being held up, while the Kandla Mundra Container Transport Welfare Association has said around 1,500 container transporters have stopped movements.

CMA CGM and Hapag-Lloyd have also issued customer advisories concerning empty-container releases and returns at Mundra. CMA CGM has indicated that CFS stuffing and gate-in operations remain available.

Supal Shah, CEO of Sarjak Container Lines, said the immediate priority should be restoring the movement of empty containers and preventing disruption to exporters.

“There are valid reasons to review how empty containers are handled at Mundra. The problem is the way the change has been introduced. When an established process is used every day by exporters, shipping lines, transporters and depots, the replacement arrangements need to be ready before the existing ones are withdrawn.”

Why are empty containers important for exports?

Empty containers are an essential part of the export logistics chain. Typically, a shipping line releases an empty container, which is collected by a transporter and delivered to the exporter’s factory. After stuffing, the laden container is transported to the terminal ahead of the vessel cut-off.

A disruption at the empty-container stage can consequently delay an export shipment even when terminal operations themselves continue normally.

Shah said the operational requirement extends beyond simply having containers stored at a designated location.

“An exporter does not care where an empty container is stored. The exporter needs the box at the factory when it is required, and the laden container needs to reach the terminal before the vessel cut-off. If that does not happen, the shipment is affected.”

Capacity of designated depots becomes a key issue

The new arrangement is expected to concentrate a larger proportion of empty-container activity within designated facilities in the Mundra Port and SEZ area.

These facilities need to accommodate not only storage but also container receiving, inspection, repair, washing and release operations. Adequate trucking capacity and coordination with shipping-line systems and equipment instructions are also required.

At present, publicly available information does not establish whether the designated facilities have sufficient capacity to absorb the volumes previously handled across multiple independent depots.

Independent depots around Mundra have also invested in land, handling equipment, workshops, repair infrastructure and manpower. Shipping lines and transporters have developed operating processes around these facilities over several years.

Shah said capacity would need to be assessed against both normal demand and periods of operational disruption.

“If a larger share of empty containers is going to be handled through fewer locations, those locations need to be able to deal with the additional volume on a normal day and during periods of disruption. Capacity needs to be established before the change is fully implemented.”

Short transition period adds to operational concerns

The timing of the policy change has also emerged as a concern. Independent depot operators stopped operations on August 28, leaving the logistics sector to manage both an ongoing dispute and a change in operating procedures.

Transport companies with trucks, equipment and employees deployed around the existing depot network may require time to adjust. Shipping lines and exporters similarly need to modify equipment-release instructions and operational plans.

Shah said a transition period would help businesses reorganise their operations without transferring disruption to cargo owners.

“A change of this scale needs a workable transition period. Companies need time to adjust their truck deployment, depot arrangements and customer instructions. If the old process stops before the new one is ready to handle the same work, the disruption will be felt by the cargo owner.”

Potential impact on shipping costs and vessel schedules

The disruption could have financial and operational consequences for exporters and importers. Industry bodies have raised concerns about missed vessel cut-offs, shipment rollovers, detention charges and additional transportation and handling costs.

The Federation of Freight Forwarders’ Associations in India (FFFAI) has sought intervention from the Directorate General of Shipping, citing the potential operational and financial impact.

According to Shah, the effectiveness of the new system should therefore be evaluated based on the overall logistics cost rather than individual operational efficiencies.

“The industry should measure the change by the total cost of moving the container. If fewer empty movements inside the port are achieved but customers then face more waiting, additional trucking, repositioning or handling, those costs have to be included when the overall benefit is assessed.”

What can Mundra learn from Jebel Ali?

APSEZ has referred to the operating model at Jebel Ali in Dubai while discussing the changes at Mundra. However, the comparison also highlights the importance of inland capacity and connectivity.

DP World recently announced a 100,000 sq m inland depot at Al Awir, outside Jebel Ali, offering empty-container storage and release services along with inspection and inventory management.

The example indicates how port-based operations can be supported by inland empty-container facilities. For cargo owners and shipping lines, however, the effectiveness of such a model depends on accessibility, available capacity and the ability to obtain and return equipment when required.

“The Dubai example is useful, but the lesson is broader than simply moving empty containers into a port. The industry needs enough capacity and enough choice in the locations from which equipment can be released and returned to keep cargo moving when operating conditions change.”

What happens next at Mundra?

The immediate requirement for the logistics industry is to restore normal empty-container movements while the longer-term depot arrangement is evaluated.

Mundra is one of India’s major container gateways, with APSEZ reporting approximately 8.5 million TEUs handled at the port during FY2025-26. Any significant change to empty-container operations therefore has implications for exporters, importers, transporters and shipping lines using the gateway.

Shah said an interim solution could help maintain cargo flows while the longer-term framework is addressed.

“The immediate priority should be to get containers moving again. Exporters should not have to absorb additional costs or miss vessel cut-offs while the industry works through a change in depot arrangements.”

The broader policy discussion is likely to focus on balancing tighter control of empty-container operations with sufficient capacity and flexibility for cargo owners.

For exporters, predictability remains central to the issue.

“Indian exporters need predictable access to equipment. They need to know where an empty container can be collected, when it will be available and how it will reach the factory. Those basic questions need clear answers whenever a major change is made to port operations.”