When a Vessel Is Under Arrest: How We Rescued a Shipment of Tobacco Raw Materials from India

A project involving the delivery of tobacco raw materials from India to Russia in January–February 2025 became a clear example of a situation where external factors required a complete reconstruction of the logistics model.

Initial Project Conditions

Astros Logistics was tasked with organizing the transportation of four containers of tobacco raw materials from the Chennai terminal (India) to Russia for a tobacco products manufacturer.

Despite the relatively small shipment volume, the cargo was critically important, as it was integrated into the client’s production schedule.

The shipment was arranged via the E-line shipping service. Containers were received in Chennai and transported to Nava Sheva Port (Jawaharlal Nehru Port), where the vessel was located. Following loading, the vessel was scheduled to depart according to the agreed timetable.

Emergence of the Crisis

However, the vessel did not depart. It was placed under arrest in the port waters.

Initially perceived as a temporary delay, the situation escalated as it became clear that the shipping line was experiencing severe financial difficulties.

E-line attempted to secure additional cargo and financing to release the vessel and continue operations, but these efforts failed. The vessel remained at anchorage for approximately one month.

Eventually, the line initiated bankruptcy proceedings. All containers were discharged back to the port terminal.

According to available information, cargo from approximately 200 freight forwarders was on board the vessel. A joint communication channel was established among affected parties to coordinate actions. Meanwhile, the shipping line effectively withdrew from its obligations, transferring the containers to the terminal without guarantees of onward shipment.

Breakdown of the Responsibility Chain

From a supply chain management perspective, the situation resulted in:

• loss of financial stability of the carrier;
• failure of the vessel to perform the voyage;
• containers remaining at the terminal;
• contractual obligations effectively not being fulfilled.

Under such circumstances, the key task was to restore the chain of responsibility and secure confirmed guarantees for further cargo movement.

Astros Logistics initiated negotiations with all stakeholders involved:

1. Port terminal — to confirm the actual status of containers, storage conditions, and release options;
2. Container equipment owners — to mitigate risks related to equipment return or detention;
3. Alternative shipping lines — to arrange re-shipment of cargo from India.

At the same time, continuous communication was maintained with the client. In tobacco industry logistics, the stability of inbound supply is critical for uninterrupted production, making transparency and timely updates essential.

Evaluation of Possible Scenarios

Two operational scenarios were considered:

Option 1: Transloading into new containers
This scenario required sourcing new equipment, organizing transloading operations at the port, and issuing a new set of documents. It involved additional costs, risks of cargo damage, and extended timelines.
Option 2: Retaining current containers and negotiating their continued use
This approach required negotiations with equipment owners and agreement on compensation but allowed avoidance of additional handling and minimized operational risks.

Following financial and operational analysis, the second option was selected as the most efficient in terms of timing and cargo safety.

Financial and Operational Actions

To restore the shipment, Astros Logistics ensured:

• payment to container owners for continued use of equipment;
• payment of terminal storage charges;
• booking freight with a new shipping line for re-export.

Part of the expenses was covered using Astros Logistics’ own funds to maintain control over the project and meet client commitments.

Approximately one month after the crisis began, the containers were successfully re-shipped from India under a revised logistics scheme.

Project Outcome

The total delay amounted to approximately two months:

• one month — containers remained on the arrested vessel;
• one month — development and implementation of legal and operational recovery mechanisms.

Despite the bankruptcy of the shipping line and creditor claims of approximately USD 2 million, the cargo was delivered to the client in full.

Conclusions

This case demonstrates that risks in international logistics are not limited to routes or geopolitical factors, but also include the financial stability of supply chain participants.

Key success factors included:

• structured engagement with all stakeholders;
• thorough legal and operational analysis of all options;
• timely financial decision-making;
• continuous communication with the client.

Astros Logistics’ extensive experience in complex markets enables the company not only to manage standard shipments, but also to restore supply chains in crisis situations.

If the reliability of international supply chains for your raw materials or finished goods is critical, Astros Logistics specialists are ready to design a logistics model tailored to your business, incorporating risk mitigation mechanisms and ensuring operational continuity.