JM Financial Flags Risks For Port Logistics Amid West Asia Tensions
WAREHOUSING & LOGISTICS

JM Financial Flags Risks For Port Logistics Amid West Asia Tensions

JM Financial warned that escalation of the US–Israel and Iran conflict and the risk of disruption in the Red Sea and Persian Gulf could affect Indian port logistics. The brokerage said liquefied natural gas shipments may be particularly exposed while crude oil imports could be realigned if refiners source oil from alternative suppliers. Container volumes to the Middle East may be impacted but major Indian hubs could see limited fallout.\n\nChannel checks showed shipping companies are seeking routes that avoid the Strait of Hormuz, including Fujairah and Salalah. Mundra handles nearly nine million (mn) TEUs annually, with about 15 per cent linked to the Middle East, around one point three to one point four mn TEUs and a potential three to four per cent hit to Adani Ports' monthly volumes. The brokerage said if the conflict runs beyond three months cumulative effects may remain modest.\n\nFujairah has been used to bypass the Strait but was hit by drone strikes that damaged tankage at JSW Infra, and Iran has not ruled out a blockade, prompting consideration of pipeline or transhipment alternatives. Rerouting may reduce the impact but is unlikely to fully offset a significant blockade.\n\nThe Habshan–Fujairah crude pipeline has capacity of one point five mn barrels per day and Saudi volumes could flow via the East–West pipeline to Yanbu with five mn barrels per day. Routing via the Cape of Good Hope would increase transit times to the US and Europe by ten to fifteen days, reduce shipping capacity and raise costs.\n\nIndia sourced around 50 per cent of its LPG imports in CY25 from Gulf suppliers and has sought alternatives, including oil marketing companies agreeing to import about two point two million (mn) tonnes (t) of LPG from the US from CY26, equal to ten per cent of imports. JM Financial said supply disruptions in the Gulf have pushed LNG prices up around 40 per cent versus 17 per cent for propane and butane, and that aluminium, fertiliser and iron ore pellet trade could be affected, benefiting eastern ports.

JM Financial warned that escalation of the US–Israel and Iran conflict and the risk of disruption in the Red Sea and Persian Gulf could affect Indian port logistics. The brokerage said liquefied natural gas shipments may be particularly exposed while crude oil imports could be realigned if refiners source oil from alternative suppliers. Container volumes to the Middle East may be impacted but major Indian hubs could see limited fallout.\n\nChannel checks showed shipping companies are seeking routes that avoid the Strait of Hormuz, including Fujairah and Salalah. Mundra handles nearly nine million (mn) TEUs annually, with about 15 per cent linked to the Middle East, around one point three to one point four mn TEUs and a potential three to four per cent hit to Adani Ports' monthly volumes. The brokerage said if the conflict runs beyond three months cumulative effects may remain modest.\n\nFujairah has been used to bypass the Strait but was hit by drone strikes that damaged tankage at JSW Infra, and Iran has not ruled out a blockade, prompting consideration of pipeline or transhipment alternatives. Rerouting may reduce the impact but is unlikely to fully offset a significant blockade.\n\nThe Habshan–Fujairah crude pipeline has capacity of one point five mn barrels per day and Saudi volumes could flow via the East–West pipeline to Yanbu with five mn barrels per day. Routing via the Cape of Good Hope would increase transit times to the US and Europe by ten to fifteen days, reduce shipping capacity and raise costs.\n\nIndia sourced around 50 per cent of its LPG imports in CY25 from Gulf suppliers and has sought alternatives, including oil marketing companies agreeing to import about two point two million (mn) tonnes (t) of LPG from the US from CY26, equal to ten per cent of imports. JM Financial said supply disruptions in the Gulf have pushed LNG prices up around 40 per cent versus 17 per cent for propane and butane, and that aluminium, fertiliser and iron ore pellet trade could be affected, benefiting eastern ports.

Next Story
Infrastructure Transport

MMRDA advances 250 m on Orange Gate–Marine Drive tunnel

The Mumbai Metropolitan Region Development Authority (MMRDA) has completed 250 m of underground tunnelling for the Orange Gate–Marine Drive Urban Road Tunnel using India’s largest slurry shield tunnel boring machine (TBM) deployed for an urban road project.The project involves twin tunnels extending over 7 km beneath critical transport corridors, including Central Railway, Western Railway and Metro Line 3. The work requires high-precision engineering to navigate densely developed urban infrastructure.Once completed, the tunnel is expected to reduce travel time between Orange Gate and Marin..

Next Story
Infrastructure Urban

Hindustan Zinc Pays Rs 188.46 Billion in FY26

Hindustan Zinc contributed Rs 188.46 billion to the public exchequer in FY 2025-26, according to its 9th Tax Transparency Report. The contribution, equivalent to 46 per cent of the company’s revenue, included direct and indirect taxes, government royalties, dividends to the Government of India, withholding taxes and other statutory levies.The company’s five-year cumulative contribution to the exchequer stood at Rs 915.72 billion. In FY26, Hindustan Zinc reported revenue of Rs 408.44 billion, EBITDA of Rs 221.62 billion and profit after tax of Rs 138.32 billion. It also achieved its highest..

Next Story
Infrastructure Urban

World of Concrete India 2026 Opens in Mumbai

Informa Markets in India will host the 12th edition of World of Concrete India 2026 from 3–5 June 2026 at the Bombay Exhibition Centre, Mumbai. The specialised B2B exhibition will bring together manufacturers, suppliers, contractors, developers, architects, consultants, infrastructure companies, project leaders and government stakeholders.The event is expected to feature over 350 brands and more than 18,000 trade professionals. It will cover concrete and cement, dry mortar, precast technologies, formwork, construction chemicals, industrial and commercial flooring, scaffolding, safety solutio..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

-->