Cargo volumes may take a hit: ICRA Ratings

Our Bureau Chennai | Updated on February 19, 2020

Industries like chemicals, dyes and pigments, pharmaceuticals, textiles, electronics and auto could witness short-term supply disruptions due to the production shutdown in China. In turn, the reduced economic activity could result in a slowdown in bulk consumption and this could indirectly affect bulk imports like coal, crude and other commodities, said K Ravichandran, Senior VP and Group Head, ICRA Ratings, in a report on the impact of coronavirus on Indian ports.

Ports that have significant exposure to the affected cargo categories could see an impact on their volumes in the near term. The extent of the impact will be dependent of the duration of restriction on China’s industrial activities due to Covid-19 and the pace of subsequent recovery, he said.

The shutdown of industries in China is a ‘negative’ for the Indian exim cargo movement as India has significant trade linkages with China by way of import and export of raw materials and finished goods.

Published on February 19, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor

You May Also Like