Supreme Petrochem, India's largest polystyrene producer, has declared force majeure for its exports after the nation's key west coast port of Mumbai was closed after the collision of two ships on Saturday, a company source said.
Shipping traffic was halted to facilitate the clearing of about 150 containers that fell off the Panamanian vessel MSV Chitra following its collision with the MV Khalijia-III on Saturday.
Up to 100 containers of polystyrene targeted to export markets remain stranded at the port, and it is expected the backlog of cargo will take two to three weeks to clear from the port, the source added.
Though the port is expected to reopen August 15, priority will be given to facilitating imports of essential fuel oil and coal for the state of Maharashtra's power generation requirements. Other cargo will have to wait,the
source added.
Supreme Petrochem is considering transferring polystyrene shipments for export by road either to Kandla port or Mundra port if further delays postpone reopening the Mumbai port.
But with Kandla 800 km from Mumbai and Mundra 400 km away, transferring cargo to other ports would entail further transportation costs. In addition,trucking polystyrene from Mumbai to Kandala is expected to take a full day,while the road trip to Mundra would require half a day, said the source.
Supreme will consider supplying additional polystyrene to the domestic Indian market for the next two to three weeks, as imported polystyrene will be unable to move through the Mumbai port.
The company, as a result, will continue to maintain run rates at its polystyrene plant at 100% capacity, rates it can sustain for the next two to
three weeks based on its existing styrene feedstock inventory, the source said.
Supreme operates a 272,00 mt/year polystyrene plant at Nagothane near Mumbai comprising three lines with about 90,000 mt/year capacity each. It holds over 50% market share in India's polystyrene market and exports production to overseas markets.
Shipping traffic was halted to facilitate the clearing of about 150 containers that fell off the Panamanian vessel MSV Chitra following its collision with the MV Khalijia-III on Saturday.
Up to 100 containers of polystyrene targeted to export markets remain stranded at the port, and it is expected the backlog of cargo will take two to three weeks to clear from the port, the source added.
Though the port is expected to reopen August 15, priority will be given to facilitating imports of essential fuel oil and coal for the state of Maharashtra's power generation requirements. Other cargo will have to wait,the
source added.
Supreme Petrochem is considering transferring polystyrene shipments for export by road either to Kandla port or Mundra port if further delays postpone reopening the Mumbai port.
But with Kandla 800 km from Mumbai and Mundra 400 km away, transferring cargo to other ports would entail further transportation costs. In addition,trucking polystyrene from Mumbai to Kandala is expected to take a full day,while the road trip to Mundra would require half a day, said the source.
Supreme will consider supplying additional polystyrene to the domestic Indian market for the next two to three weeks, as imported polystyrene will be unable to move through the Mumbai port.
The company, as a result, will continue to maintain run rates at its polystyrene plant at 100% capacity, rates it can sustain for the next two to
three weeks based on its existing styrene feedstock inventory, the source said.
Supreme operates a 272,00 mt/year polystyrene plant at Nagothane near Mumbai comprising three lines with about 90,000 mt/year capacity each. It holds over 50% market share in India's polystyrene market and exports production to overseas markets.
