Cyclone Michaung Hits Chennai Port, Raises Concerns on Chemical Supply Chains

On November 29, 2023, Cyclone Michaung struck Chennai and its suburban areas, leading to severe disruptions in transportation services, including trains, flights, and buses in the city. The cyclonic storm brought heavy rains and flooding, wreaking havoc in the port city and causing significant disturbances in the supply chain of various commodities.

Reports from various sources indicate that the impact of the cyclone led to the suspension of vessel berthing and cargo movements at major ports such as Chennai, Kattupalli, and Ennore. Additionally, the port gates were closed for a day as a safety measure in response to the adverse weather conditions. The overall consequence of these disruptions has put challenges on the supply chain for various chemicals and non-chemical commodities. This port handles the trade of various chemicals, including POL (Petroleum, Oil, and Lubricants), Cooking Coal, and iron ore. The Chennai port gets the majority of its imports from various countries, including China, the USA, UAE, South Korea, and Saudi Arabia.

The closure of port gates, attributed to the impact of Cyclone Michaung, has inflicted significant repercussions on the Indian Petroleum market, particularly at a port recognized for its extensive trade in POL. The suspension of vessel berthing and cargo movements, coupled with the temporary shutdown of port gates, has disturbed the usual flow of POL in substantial volumes. However, no major disruption has been reported as of now, as normal operations resume at the port after 11 AM on December 5 (Tuesday), but it could have been a dent in the supply chain at Chennai port.

On the other hand, this disruption has introduced delays and challenges in the movement of petroleum products, affecting suppliers and consumers within the market.

As per recent insights, the cyclone has changed its direction (a unique incident for this type of cyclone) and is heading toward Andhra Pradesh shores. However, the analysis states that this cyclone would not affect the working of ports based in Andhra Pradesh, as it is expected to hit Bapatla, which is located hundreds of kilometers away from any nearest port. Nevertheless, the local supply chain might be affected due to anticipated heavy rains in several parts of South India. State governments have already been taking measures like evacuations, running dams at high capacity, etc, to ease the impact of disruptions on locals. Despite all these things, nothing can be claimed with surety, as weather conditions are still uncertain and significant harm has been done already.