Poddar Global imports newsprint in chartered break bulk vessel from Russia
Hyderabad: Leading importers and distributors of newsprint and paper Poddar Global Private Limited brought a chartered break bulk vessel M/V LADA carrying standard newsprint from Russia. This is to ease the tightening newsprint supplies to Indian newspapers, It arrived at Mumbai Port on June 5. It is the first time after 25 years Russia has […]
Hyderabad: Leading importers and distributors of newsprint and paper Poddar Global Private Limited brought a chartered break bulk vessel M/V LADA carrying standard newsprint from Russia. This is to ease the tightening newsprint supplies to Indian newspapers,
It arrived at Mumbai Port on June 5. It is the first time after 25 years Russia has loaded the first break bulk vessel of newsprint. India also got for the first time newsprint by break bulk after 25 years.
Break bulk shipping is a method used to transport cargo or goods that cannot fit in standard-size shipping containers or cargo bins. Break bulk cargo requires a different set of equipment and infrastructure as well as experienced personnel. However, no equipment is available to handle the break bulk cargo of newsprint paper at the ports as they have moved to handling containerised cargo.
Poddar, apart from seeking necessary permissions, licences and approvals, arranged specially designed equipment and machinery for handling of break bulk cargo of newsprint. It kept in mind the safety, security and fragile nature of the newsprint.
The company said the move will help the Indian newspaper industry to get regular flow of newsprint at reasonable prices from Russia in this critical time.
Covid has ravaged the newsprint industry as global supply chains have been suffering disruptions in logistics for more than two years now. Cargo containers are unavailable and ports are congested due to unavailability of staff. They are also suffering due to intermittent stoppages due to Covid19-related lockdowns. Factories have shut temporarily as they do not have components in stock.
In India, several domestic newsprint manufacturers were converting their mills to produce packaging material due to large volume growth in e-commerce. Those mills continuing to produce newsprint are facing a shortage of recycled fibre. India imported about 1.6 million metric tonne newsprint annually (pre-pandemic). Russia is the major newsprint supplier to India, accounting for 50-60% of the total import of newsprint.
For the past two years, the Indian newspaper industry has been facing shortage of newsprint supplies as well as steep increase in prices on the back of Covid-19, global capacity shutdown, high energy costs, logistics costs and Russia-Ukraine conflict.
The exclusion of Russian newsprint from Asian markets due to sanctions following its invasion of Ukraine is exacerbating the undersupply situation and leaving the Indian newspapers struggling to find supplies. Also, non-availability of containers and vessels in view of shipping lines ceasing operations, hampered banking and financing services due to sanctions and non-availability of insurance coverage for Russian cargo is massively cutting the trade. Newsprint prices will continue to rise due to the ongoing tight supply and also increase in demand in India ahead of festival season from August to October.
