CHENNAI: More than 600 premium cars worth over Rs 300 crore being exported from Mexico to the Gulf markets, continue to remain docked at the Chennai Port, as the ongoing conflict in West Asia has disrupted shipping routes, highlighting the pressures faced by global automotive supply chains.
Port officials said that the consignment, which was rerouted mid-voyage, has been docked in Chennai for over two weeks. Onward movement is dependent on the stabilisation of destination markets. The diversion underscores how geopolitical tensions are beginning to ripple through long-haul logistics linking Latin American vehicle production hubs with energy-rich Gulf economies.
Mexico remains a key node in global automotive manufacturing, hosting assembly plants operated by major car makers including General Motors, Ford, Nissan, Stellantis, Volkswagen, Toyota and BMW, many of which rely on maritime routes passing through the Gulf for exports. With vessels avoiding conflict-prone zones, ports such as Chennai Port and Kamarajar Port are emerging as temporary holding points.
The disruption has also exposed structural cost asymmetries between regional ports. While both Kamarajar Port and Chennai Port offer a 20-day free window for automobile cargo moved through RoRo (Roll-On /Roll-Off) vessels, demurrage rises sharply after this period, increasing the financial burden on delayed shipments.
The disruption is not limited to automobile shipments. Exports of barite — also known as barium sulphate — from Chennai Port to Middle East oil producers have also been hit, potentially affecting supplies of a critical input used in drilling fluids. The mineral, essential for maintaining pressure and stability in oil wells, underpins upstream exploration activity.
A port official said that around 150,000 tonnes of barite sourced from Andhra Pradesh is currently lying at the port awaiting export.