Average container dwell time at Mundra fell to 45 hours in the latest monthly reading, down from 62 hours a year earlier, according to port authority data. For New and Renewable Energy shippers, whose cargo is often time-sensitive and high in value, the improvement has translated into measurable savings on demurrage and inventory carrying costs.
Resilience is now a boardroom topic. After repeated disruptions in global shipping lanes, buyers in Japan and Germany 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.
What changed at the port
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 4.3%. Customs brokers say the biggest change is predictability: clearance windows can now be planned rather than hoped for.
Not every link has kept pace. Last-mile trucking remains fragmented, with small operators accounting for most capacity and little data sharing. Several exporters reported that goods cleared in 24 hours then waited three days for a truck, eroding much of the benefit achieved upstream.
By the numbers
The next phase will be about data. Ports, railways and shippers are working on a shared visibility platform, and a pilot at Mundra 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.
“Resilience is becoming a commercial differentiator, not a cost centre.”
Rail, warehousing and the middle mile
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.
Source: IGEN Intelligence analysis of central board of indirect taxes & customs data. Illustrative mock data.
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.
| Gateway | Dwell (hrs) | Rail share | Inspection rate |
|---|---|---|---|
| Mundra | 55 | 18% | 4.1% |
| Nhava Sheva | 68 | 13.6% | 6.8% |
| Chennai | 60 | 24.7% | 2.5% |
| Kolkata | 54 | 11.3% | 5.2% |
| Visakhapatnam | 66 | 22.4% | 1.9% |
The gaps that remain
Warehousing is evolving in parallel. Grade-A capacity near Mundra reached 2,059 thousand square metres this year, with new facilities offering temperature control and bonded storage. Rents have climbed 4.3%, but occupancy at modern sites is above 90 percent, pointing to unmet demand.
Timeline of key events
- Paperless clearance
Electronic documents become mandatory for all containerised exports.
- Rail corridor opens
Double-stack services begin between Mundra and the inland depot.
- Network redesign
Ultratech Cement consolidates three warehouses into one automated hub.
- Dwell hits low
Average dwell time drops to 45 hours, a multi-year low.
- Visibility pilot
Port, rail and shippers begin a shared tracking pilot.
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 $2.9 billion to multimodal parks and port connectivity. Industry groups welcome the intent but want faster land-acquisition clearances.
Expert commentary
“The port is no longer the problem. The problem is everything that happens in the 200 kilometres after the gate.”
“Smaller firms are not at a disadvantage on quality; they are at a disadvantage on paperwork and finance.”
“In my conversations with procurement heads, reliability is mentioned three times for every mention of price.”
Where the next savings are
Ultratech Cement said it redesigned its network around the new corridor, consolidating three regional warehouses into one automated hub and shifting 12.4% of its volume to rail. The company estimates a saving of $309 million a year and a reduction in emissions intensity of roughly 4.3%, a point increasingly requested by European customers.
What it means for you
Move to paperless clearance and book rail slots in advance; consider a second gateway for contingency.
Invest in data integration with customs and ports; fragmented last-mile operators should consider consortium models.
Demand for bonded and temperature-controlled space near gateways outstrips supply; underwrite at current rents.
Ask suppliers for documented contingency routes and track transit via the new visibility tools as they roll out.
Companies and leaders in this story
Frequently asked questions
Sources
- Central Board of Indirect Taxes & Customs: Port-level clearance and dwell data
- Ministry-level press releases: Scheme guidelines and cabinet decisions
- Directorate General of Foreign Trade: Export-import policy and public notices
- UN Comtrade: Bilateral trade flows by HS code
Mock content for demonstration. Names, figures and quotes are illustrative and not real reporting.