Indian Ports Struggle with Idling Crisis as US Gas Imports Overwhelm Gulf Trade

A surge in American shale gas is redrawing global trade maps, leaving traditional Persian Gulf carriers stranded at Indian docks for up to 10 days.

<span style="font-size:14.0pt;line-height:107%;

font-family:"Times New Roman",serif">KANDLA/MANGALURU

— Indian ports are witnessing a dramatic shift in energy geopolitics as

foreign-flagged vessels carrying US liquefied petroleum gas (LPG) increasingly

sideline traditional Middle Eastern suppliers.<o:p></o:p>

<span style="font-size:14.0pt;line-height:107%;font-family:

"Times New Roman",serif">The shift has triggered a commercial "dead

zone" for Gulf-based fleets. Industry sources report that carriers

arriving from the Persian Gulf are facing idling periods of up to 10 days at

major hubs like Kandla, Hazira, and Mangaluru after discharging their

cargo. While recent transits through the Strait of Hormuz—such as the Jag

Vikram—have proceeded without incident following the ceasefire, the

economic incentive to return to the Gulf has plummeted.<o:p></o:p>

<span style="font-size:14.0pt;line-height:107%;font-family:

"Times New Roman",serif">The crisis for regional fleets stems from a production

explosion in the West. US LPG production reached a record 1.2 million

barrels per day in the first quarter of 2026.<o:p></o:p>

<span style="font-size:14.0pt;line-height:107%;font-family:

"Times New Roman",serif">Global operators, such as Pyxis Tankers, are

capitalizing on this surplus by deploying Very Large Gas Carriers (VLGCs) from

the Texas Gulf Coast. These "mega-tankers" offer economies of scale

that Middle Eastern routes currently cannot match. <o:p></o:p>

</div><span style="font-size:14.0pt;line-height:107%;

font-family:"Times New Roman",serif">Infrastructure Strained by Success<o:p></o:p>

<span style="font-size:14.0pt;line-height:107%;font-family:

"Times New Roman",serif">While the influx of US cargo bolsters India’s energy

security, it is placing unprecedented pressure on domestic infrastructure. Kandla’s

Oil Jetty No. 1, responsible for 25% of India’s national LPG throughput, is

struggling to manage the presence of idling tonnage alongside new arrivals.<o:p></o:p>

<span style="font-size:14.0pt;line-height:107%;font-family:

"Times New Roman",serif">To prevent a total bottleneck, India is turning to its

rail infrastructure. The Western Dedicated Freight Corridor (DFC) is now

running at 70% capacity, serving as a critical pressure-release valve to move

gas from coastal terminals to bottling plants in Northern India, bypassing

congested road networks.<o:p></o:p>

</div><span style="font-size:14.0pt;line-height:107%;font-family:

"Times New Roman",serif">Analysts view this shift as a sign of India’s growing

"sourcing maturity." By diversifying its portfolio—increasing Russian

imports by 40% and US shale by 25%—India has effectively ended its sole

dependence on the volatile Persian Gulf.<o:p></o:p>

<span style="font-size:14.0pt;line-height:107%;font-family:

"Times New Roman",serif">For shipowners, the traditional "milk run"

between the Gulf and India is no longer a guaranteed profit center. As US price

advantages and trans-Pacific tonnage capture more of the Indian market,

Gulf-focused fleets are being forced to pivot toward European or intra-Asia

trades to remain solvent.<o:p></o:p>

<span style="font-size:14.0pt;line-height:107%;font-family:

"Times New Roman",serif">Despite an 80% rebound in Strait of Hormuz traffic

since the ceasefire, the "foreign vessel preference" driven by US

price points appears to be a permanent new fixture of the Indian energy

landscape.<o:p></o:p>

<span style="font-size:14.0pt;line-height:107%;font-family:

"Times New Roman",serif">

Indian Ports Struggle with Idling Crisis as US Gas Imports Overwhelm Gulf Trade

Haulage Times Daily Intelligence