## Market Overview Logistics bottlenecks at New Mangalore Port have emerged as a primary operational bottleneck for South Indian plastic processors on October 1, 2026. Scheduled maintenance operations across primary container berths, combined with unexpected vessel bunching, have significantly curtailed container throughput over the past week. Imported shipments of Polypropylene (PP) and Ethylene Vinyl Acetate (EVA) resins are experiencing extended dwell times at port terminals, causing dispatch delays for downstream converters across Karnataka, Kerala, and adjacent southern industrial belts.
Logistics service providers report that clearance timelines for containerized resin consignments have lengthened from the standard two days to nearly seven days. The slowdown comes at a crucial juncture as manufacturing units prepare for peak quarter-four production schedules. Regional polymer distributors are forced to recalibrate supply chain routes, while freight handling charges at regional yards have seen temporary upward adjustments due to container demurrage and extended equipment turnaround times.
## Demand and Supply Demand for imported Polypropylene and EVA grades remains firm across South Indian manufacturing clusters, driven by strong seasonal requirement from consumer goods, footwear, and packaging sectors. However, the supply side faces localized strain as landed cargoes remain trapped in port holding areas. Regional warehouse stocks in Bengaluru and Mysuru have dropped below typical operational thresholds as converters draw down buffer inventories to sustain continuous plant operations.
Supply chain disruptions are particularly acute for specialized EVA grades used in footwear components and solar encapsulant films, where domestic substitution options are limited. While domestic petrochemical producers in Western India have attempted to bridge the deficit through rail shipments, wagon shortages and long transit times have limited the immediate relief available to southern converters.
## Price Trends Although primary producer resin list prices have remained relatively stable across India today, spot prices for imported PP and EVA granules in southern spot markets have ticked upward by INR 1.50 to INR 2.50 per kilogram. This localized price premium reflects immediate delivery surcharges and rising warehouse storage fees rather than underlying global resin price movement. Importers are attempting to pass on secondary demurrage expenses to spot buyers requiring urgent material.
Converters operating on tight profit margins are reluctant to absorb these additional freight-related costs. Larger processing units are relying on contractual volumes delivered via alternative ports, whereas small and medium enterprises (SMEs) purchasing from open spot markets bear the brunt of local market premiums. Financial pressure is expected to persist until port turnaround times normalize.
## Regional Focus The impact of the port delays is heavily concentrated across the Bengaluru, Mangaluru, and Kochi industrial belts. Plastic processing facilities in the Peenya and Bidadi industrial estates around Bengaluru are reporting delayed deliveries of film-grade PP and high-VA content EVA resins. Converters in Kerala, particularly footwear manufacturing clusters around Kozhikode and Ernakulam, are similarly grappling with delayed EVA granule arrivals needed for sole moulding production lines.
In response to the bottleneck, logistics operators are attempting to divert incoming feeder vessels to Chennai and Tuticorin ports. However, inter-state road transport from these alternative discharge ports adds substantial freight costs and adds 36 to 48 hours of transit time, limiting the viability of quick supply rerouting for time-sensitive production commitments.
## Outlook Port authorities at New Mangalore Port expect container berth maintenance to wrap up over the coming week, with full operational capacity anticipated to restore by mid-October 2026. However, logistics experts warn that clearing the accumulated backlog of containerized resin will require an additional ten days after maintenance concludes.
Market participants advise processors to maintain higher safety stock buffers and plan purchasing schedules well in advance through October. As vessel schedules gradually stabilize and port gate clearances improve, southern spot market premiums are expected to recede back toward parity with national price benchmarks, restoring normal supply chain fluidity across South Indian polymer processing centers.