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Back to News FeedDiamond, GemsBottleneck Watch: What Is Slowing Diamond Shipments Out of Chennai
TradeS17 · Diamond, Gems & JewelleryFreeSummary

Bottleneck Watch: What Is Slowing Diamond Shipments Out of Chennai

Shippers that moved early to digital documentation are reporting double-digit reductions in dwell time; laggards are paying for it in demurrage.

KS
Karthik SubramanianVERIFIED
Logistics & Ports Reporter, IGEN News
20 Oct 2026, 18:52 IST8 min read1.7K views

Updated 21 Oct 2026, 23:12 IST

Diamond, Gems & Jewellery: illustrative image for "Bottleneck Watch: What Is Slowing Diamond Shipments Out of Chennai"
Retail and consumer markets: illustrative image for Diamond coverage. Photo: Unsplash.
107
3
Sponsored

Trade finance for exporters: invoice discounting in 48 hours (partner content).

Average container dwell time at Chennai fell to 90 hours in the latest monthly reading, down from 62 hours a year earlier, according to port authority data. For Diamond shippers, whose cargo is often time-sensitive and high in value, the improvement has translated into measurable savings on demurrage and inventory carrying costs.

Policy is encouraging the shift. The national logistics plan sets a target of cutting logistics cost to single digits as a share of output, and the latest budget allocated $5 billion to multimodal parks and port connectivity. Industry groups welcome the intent but want faster land-acquisition clearances.

Key takeaways

  • Last-mile trucking is the weakest link; goods wait days for a truck after clearing in hours.
  • Rail now carries 18.4% of sector export volume on the new corridor.
  • Modern warehouse occupancy is above 90 percent as rents climb 4.2%.
  • A shared visibility platform pilots next quarter at Chennai.
  • Container dwell time at Chennai fell to 90 hours from 62 a year ago.

What changed at the port

Technology adoption is uneven. Large shippers have integrated customs, transport and inventory systems and receive alerts on delays in near real time; smaller firms still rely on email and phone calls. Logistics platforms are targeting this gap with subscription tools priced for firms with fewer than 50 shipments a month.

Infosys said it redesigned its network around the new corridor, consolidating three regional warehouses into one automated hub and shifting 7% of its volume to rail. The company estimates a saving of $311 million a year and a reduction in emissions intensity of roughly 4.2%, a point increasingly requested by European customers.

By the numbers

Dwell time
43 hrs
-24 hrs YoY
average container dwell
Inspection rate
6%
-4 pts
physical inspection rate
Rail share
19.9%
+9 pts
export volume by rail
Logistics saving
6.2%
cost cut
logistics spend saved

Insurance and finance are adapting. Cargo insurers have begun offering parametric products that pay out automatically when a vessel is delayed beyond a threshold, and banks are experimenting with receivables finance triggered by electronic bills of lading, which could shorten cash cycles by two to three weeks.

“Resilience is becoming a commercial differentiator, not a cost centre.”

Vikram Malhotra, Industry Analyst, Manufacturing

Rail, warehousing and the middle mile

Resilience is now a boardroom topic. After repeated disruptions in global shipping lanes, buyers in Brazil and Australia have asked suppliers to document contingency routes. Indian exporters with alternative gateways at two or more ports are winning preferred-supplier status in several categories.

Average container dwell time at Chennaihours
Average container dwell time at ChennaiAverage container dwell time at Chennai: from 16.5 hours in W1 to 12.2 hours in W8; high 16.5 in W1, low 12.2 in W8.1112.413.715.116.516.5W1W2W3W413.6W5W6W712.2W8

Source: IGEN Intelligence analysis of central board of indirect taxes & customs data. Illustrative mock data.

The gains are largely procedural. Pre-arrival processing, risk-based inspection and paperless clearance now cover most consignments, and the share of containers selected for physical examination has fallen to 4.2%. Customs brokers say the biggest change is predictability: clearance windows can now be planned rather than hoped for.

Gateway performance comparison
GatewayDwell (hrs)Rail shareInspection rate
Mundra6019.8%6.8%
Nhava Sheva675.7%2.6%
Chennai3312.6%4.3%
Kolkata3713.1%2.7%
Visakhapatnam2820.6%2.2%
Source: Industry association surveys; IGEN estimates. Figures are illustrative mock data.

The gaps that remain

Warehousing is evolving in parallel. Grade-A capacity near Chennai reached 432 thousand square metres this year, with new facilities offering temperature control and bonded storage. Rents have climbed 4.2%, but occupancy at modern sites is above 90 percent, pointing to unmet demand.

Timeline of key events

  1. 10 Sep 2026
    Paperless clearance

    Electronic documents become mandatory for all containerised exports.

  2. 20 Sep 2026
    Rail corridor opens

    Double-stack services begin between Chennai and the inland depot.

  3. 30 Sep 2026
    Network redesign

    Infosys consolidates three warehouses into one automated hub.

  4. 10 Oct 2026
    Dwell hits low

    Average dwell time drops to 90 hours, a multi-year low.

  5. 20 Oct 2026
    Visibility pilot

    Port, rail and shippers begin a shared tracking pilot.

Beyond the port gate, rail is taking a larger role. A dedicated freight corridor connecting Chennai to inland container depots now carries 18.4% of the sector's export volume, and double-stack services have cut inland transit to under 36 hours for the first time. Rates are competitive with road once total delivered cost is considered.

Expert commentary

“Predictability beats speed. A two-day clearance you can plan around is worth more than a one-day clearance you cannot.”

IQ
Imran Qureshi
Gulf & West Asia Bureau Chief, IGEN News

“In my conversations with procurement heads, reliability is mentioned three times for every mention of price.”

VM
Vikram Malhotra
Industry Analyst, Manufacturing, IGEN Intelligence

“Smaller firms are not at a disadvantage on quality; they are at a disadvantage on paperwork and finance.”

FS
Dr. Farah Siddiqui
Economist, Trade & Development, Centre for Trade Studies

Where the next savings are

The next phase will be about data. Ports, railways and shippers are working on a shared visibility platform, and a pilot at Chennai will go live next quarter. If it works, exporters will be able to track a container from factory gate to destination port in a single interface.

What it means for you

Shippers

Move to paperless clearance and book rail slots in advance; consider a second gateway for contingency.

Logistics providers

Invest in data integration with customs and ports; fragmented last-mile operators should consider consortium models.

Warehouse investors

Demand for bonded and temperature-controlled space near gateways outstrips supply; underwrite at current rents.

Buyers abroad

Ask suppliers for documented contingency routes and track transit via the new visibility tools as they roll out.

Companies and leaders in this story

Infosys Asian Paints Reliance Industries Tata Electronics Sudha Raghavan Dev Malik

Frequently asked questions

To 90 hours at Chennai, from 62 hours a year earlier, driven mainly by paperless clearance and risk-based inspection.

Sources

  1. Central Board of Indirect Taxes & Customs: Port-level clearance and dwell data
  2. Industry association surveys: Member-level compliance and sentiment data
  3. Ministry-level press releases: Scheme guidelines and cabinet decisions
  4. Port authority statistics: Container volumes, dwell times and berth productivity

Mock content for demonstration. Names, figures and quotes are illustrative and not real reporting.

#Diamond#SupplyChain#Logistics#Ports#Brazil
KS
Written by

Karthik Subramanian

Logistics & Ports Reporter, IGEN News

Follows container volumes, port efficiency and multimodal corridors from Kandla to Kolkata.

Source & Editorial Attribution

Ministry of Commerce & Industry · IGEN Trade Intelligence

This article is curated and summarized by the IGEN editorial desk. All text is verified from official filings and trade bulletins, rendered strictly in plain text for compliance and clarity. Full text and regulatory updates are archived in the national registry.

Daily briefing

Get stories like this in your inbox

One concise email each morning on trade, policy and markets across Diamond, Gems and 49 other sectors.

Discussion (3)

Sort by: Most recent
Log in to comment
A
Ankit Sharma
38m ago

The point about documentation holds true on the ground. Our forwarder has already seen holds from template mismatches.

F
Faisal Khan
2h ago

Agree with the expert on diversification. Two gateways saved us last quarter.

D
Deepa Nair
5h ago

Any word on how this plays out for services exporters? Would be a good follow-up.

In this article
  1. 1. What changed at the port
  2. 2. Rail, warehousing and the middle mile
  3. 3. The gaps that remain
  4. 4. Where the next savings are
  5. 5. Discussion (3)

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  4. 04Compliance Window Opens for Animal Husbandry Units as Ministry of Fisheries, Animal Husbandry & Dairying Tightens Standards
  5. 05Vivek Anand on Building a Global Pharmaceutical Business From India: "Patience Is a Strategy"
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S17 · Diamond, Gems & Jewellery

Ministry of Commerce & Industry

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Back to News FeedDiamond, GemsBottleneck Watch: What Is Slowing Diamond Shipments Out of Chennai
TradeS17 · Diamond, Gems & JewelleryFreeSummary

Bottleneck Watch: What Is Slowing Diamond Shipments Out of Chennai

Shippers that moved early to digital documentation are reporting double-digit reductions in dwell time; laggards are paying for it in demurrage.

KS
Karthik SubramanianVERIFIED
Logistics & Ports Reporter, IGEN News
20 Oct 2026, 18:52 IST8 min read1.7K views

Updated 21 Oct 2026, 23:12 IST

Diamond, Gems & Jewellery: illustrative image for "Bottleneck Watch: What Is Slowing Diamond Shipments Out of Chennai"
Retail and consumer markets: illustrative image for Diamond coverage. Photo: Unsplash.
107
3
Sponsored

Trade finance for exporters: invoice discounting in 48 hours (partner content).

Average container dwell time at Chennai fell to 90 hours in the latest monthly reading, down from 62 hours a year earlier, according to port authority data. For Diamond shippers, whose cargo is often time-sensitive and high in value, the improvement has translated into measurable savings on demurrage and inventory carrying costs.

Policy is encouraging the shift. The national logistics plan sets a target of cutting logistics cost to single digits as a share of output, and the latest budget allocated $5 billion to multimodal parks and port connectivity. Industry groups welcome the intent but want faster land-acquisition clearances.

Key takeaways

  • Last-mile trucking is the weakest link; goods wait days for a truck after clearing in hours.
  • Rail now carries 18.4% of sector export volume on the new corridor.
  • Modern warehouse occupancy is above 90 percent as rents climb 4.2%.
  • A shared visibility platform pilots next quarter at Chennai.
  • Container dwell time at Chennai fell to 90 hours from 62 a year ago.

What changed at the port

Technology adoption is uneven. Large shippers have integrated customs, transport and inventory systems and receive alerts on delays in near real time; smaller firms still rely on email and phone calls. Logistics platforms are targeting this gap with subscription tools priced for firms with fewer than 50 shipments a month.

Infosys said it redesigned its network around the new corridor, consolidating three regional warehouses into one automated hub and shifting 7% of its volume to rail. The company estimates a saving of $311 million a year and a reduction in emissions intensity of roughly 4.2%, a point increasingly requested by European customers.

By the numbers

Dwell time
43 hrs
-24 hrs YoY
average container dwell
Inspection rate
6%
-4 pts
physical inspection rate
Rail share
19.9%
+9 pts
export volume by rail
Logistics saving
6.2%
cost cut
logistics spend saved

Insurance and finance are adapting. Cargo insurers have begun offering parametric products that pay out automatically when a vessel is delayed beyond a threshold, and banks are experimenting with receivables finance triggered by electronic bills of lading, which could shorten cash cycles by two to three weeks.

“Resilience is becoming a commercial differentiator, not a cost centre.”

Vikram Malhotra, Industry Analyst, Manufacturing

Rail, warehousing and the middle mile

Resilience is now a boardroom topic. After repeated disruptions in global shipping lanes, buyers in Brazil and Australia have asked suppliers to document contingency routes. Indian exporters with alternative gateways at two or more ports are winning preferred-supplier status in several categories.

Average container dwell time at Chennaihours
Average container dwell time at ChennaiAverage container dwell time at Chennai: from 16.5 hours in W1 to 12.2 hours in W8; high 16.5 in W1, low 12.2 in W8.1112.413.715.116.516.5W1W2W3W413.6W5W6W712.2W8

Source: IGEN Intelligence analysis of central board of indirect taxes & customs data. Illustrative mock data.

The gains are largely procedural. Pre-arrival processing, risk-based inspection and paperless clearance now cover most consignments, and the share of containers selected for physical examination has fallen to 4.2%. Customs brokers say the biggest change is predictability: clearance windows can now be planned rather than hoped for.

Gateway performance comparison
GatewayDwell (hrs)Rail shareInspection rate
Mundra6019.8%6.8%
Nhava Sheva675.7%2.6%
Chennai3312.6%4.3%
Kolkata3713.1%2.7%
Visakhapatnam2820.6%2.2%
Source: Industry association surveys; IGEN estimates. Figures are illustrative mock data.

The gaps that remain

Warehousing is evolving in parallel. Grade-A capacity near Chennai reached 432 thousand square metres this year, with new facilities offering temperature control and bonded storage. Rents have climbed 4.2%, but occupancy at modern sites is above 90 percent, pointing to unmet demand.

Timeline of key events

  1. 10 Sep 2026
    Paperless clearance

    Electronic documents become mandatory for all containerised exports.

  2. 20 Sep 2026
    Rail corridor opens

    Double-stack services begin between Chennai and the inland depot.

  3. 30 Sep 2026
    Network redesign

    Infosys consolidates three warehouses into one automated hub.

  4. 10 Oct 2026
    Dwell hits low

    Average dwell time drops to 90 hours, a multi-year low.

  5. 20 Oct 2026
    Visibility pilot

    Port, rail and shippers begin a shared tracking pilot.

Beyond the port gate, rail is taking a larger role. A dedicated freight corridor connecting Chennai to inland container depots now carries 18.4% of the sector's export volume, and double-stack services have cut inland transit to under 36 hours for the first time. Rates are competitive with road once total delivered cost is considered.

Expert commentary

“Predictability beats speed. A two-day clearance you can plan around is worth more than a one-day clearance you cannot.”

IQ
Imran Qureshi
Gulf & West Asia Bureau Chief, IGEN News

“In my conversations with procurement heads, reliability is mentioned three times for every mention of price.”

VM
Vikram Malhotra
Industry Analyst, Manufacturing, IGEN Intelligence

“Smaller firms are not at a disadvantage on quality; they are at a disadvantage on paperwork and finance.”

FS
Dr. Farah Siddiqui
Economist, Trade & Development, Centre for Trade Studies

Where the next savings are

The next phase will be about data. Ports, railways and shippers are working on a shared visibility platform, and a pilot at Chennai will go live next quarter. If it works, exporters will be able to track a container from factory gate to destination port in a single interface.

What it means for you

Shippers

Move to paperless clearance and book rail slots in advance; consider a second gateway for contingency.

Logistics providers

Invest in data integration with customs and ports; fragmented last-mile operators should consider consortium models.

Warehouse investors

Demand for bonded and temperature-controlled space near gateways outstrips supply; underwrite at current rents.

Buyers abroad

Ask suppliers for documented contingency routes and track transit via the new visibility tools as they roll out.

Companies and leaders in this story

Infosys Asian Paints Reliance Industries Tata Electronics Sudha Raghavan Dev Malik

Frequently asked questions

To 90 hours at Chennai, from 62 hours a year earlier, driven mainly by paperless clearance and risk-based inspection.

Sources

  1. Central Board of Indirect Taxes & Customs: Port-level clearance and dwell data
  2. Industry association surveys: Member-level compliance and sentiment data
  3. Ministry-level press releases: Scheme guidelines and cabinet decisions
  4. Port authority statistics: Container volumes, dwell times and berth productivity

Mock content for demonstration. Names, figures and quotes are illustrative and not real reporting.

#Diamond#SupplyChain#Logistics#Ports#Brazil
KS
Written by

Karthik Subramanian

Logistics & Ports Reporter, IGEN News

Follows container volumes, port efficiency and multimodal corridors from Kandla to Kolkata.

Source & Editorial Attribution

Ministry of Commerce & Industry · IGEN Trade Intelligence

This article is curated and summarized by the IGEN editorial desk. All text is verified from official filings and trade bulletins, rendered strictly in plain text for compliance and clarity. Full text and regulatory updates are archived in the national registry.

Daily briefing

Get stories like this in your inbox

One concise email each morning on trade, policy and markets across Diamond, Gems and 49 other sectors.

Discussion (3)

Sort by: Most recent
Log in to comment
A
Ankit Sharma
38m ago

The point about documentation holds true on the ground. Our forwarder has already seen holds from template mismatches.

F
Faisal Khan
2h ago

Agree with the expert on diversification. Two gateways saved us last quarter.

D
Deepa Nair
5h ago

Any word on how this plays out for services exporters? Would be a good follow-up.

In this article
  1. 1. What changed at the port
  2. 2. Rail, warehousing and the middle mile
  3. 3. The gaps that remain
  4. 4. Where the next savings are
  5. 5. Discussion (3)

Trending now

  1. 01Ministry of Chemicals & Fertilizers Notifies Revised Framework for Pharmaceutical: What Exporters Must Change by Q2 FY27
  2. 02Information and Broadcasting Stocks Rally 12% on Order Visibility, but Valuations Leave Little Room
  3. 03$1.9 billion Investment Wave Reshapes Ports: Plants, Talent and the Race for Capacity
  4. 04Compliance Window Opens for Animal Husbandry Units as Ministry of Fisheries, Animal Husbandry & Dairying Tightens Standards
  5. 05Vivek Anand on Building a Global Pharmaceutical Business From India: "Patience Is a Strategy"
Topic
S17 · Diamond, Gems & Jewellery

Ministry of Commerce & Industry

BrazilAustralia

More to read

All headlines →
Policy · Pharmaceutical

Ministry of Chemicals & Fertilizers Notifies Revised Framework for Pharmaceutical: What Exporters Must Change by Q2 FY27

6 min read
Markets · Information and Broadcasting

Information and Broadcasting Stocks Rally 12% on Order Visibility, but Valuations Leave Little Room

8 min read
Technology · Ports

$1.9 billion Investment Wave Reshapes Ports: Plants, Talent and the Race for Capacity

10 min read
Policy · Animal Husbandry

Compliance Window Opens for Animal Husbandry Units as Ministry of Fisheries, Animal Husbandry & Dairying Tightens Standards

4 min read
Leader · Pharmaceutical

Vivek Anand on Building a Global Pharmaceutical Business From India: "Patience Is a Strategy"

10 min read
Leader · Shipbuilding

The Rakesh Bhargava Interview: Why Shipbuilding Needs a Ten-Year View

10 min read