Containerized Scrap Shipments to India Come to a Grinding Halt

SEATTLE (Scrap Monster):  The extended lockdown in India has reportedly affected scrap metal supply chain. The containerized scrap shipments have almost halted. Fresh bookings to the country have been temporarily suspended. The restrictions are feared to have long-lasting impacts.

Meantime, major shipping lines have announced waivers for detention fees for containers stranded at ports. Maersk has decided to waive detention fees from 22 March through 21 April. MSC has waived off fees for the period from 22 March to 3 May. Also, Hapag-Lloyd, CMA CGM Agencies and Ocean Network Express have decided to waive fees from 22 March and 3 May.

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Apart from problems related to clearance of containers at port, transportation of goods continues to be a major roadblock, as several areas within the country continues to be in orange and red zones, where traffic is restricted. The tight cashflow for buyers and limited availability of workers too have impacted movement of goods. Incidentally, containerized scrap accounts for much of the ferrous and non-ferrous scrap imports by the country.

The long-lasting impacts of port clearance and related transportation issues coupled with anticipated downturn in scrap demand over the long term are feared to impact annual scrap sales, industry participants noted.