News / CMA CGM to reflag box ship as the French carrier eyes growing Indian market

The box carrier heavyweights appear to be increasingly romancing the Indian market, with trade indicators and investment policies becoming more conducive for growth.

One ground-breaking move has come from CMA CGM: according to industry updates, the French liner is set to flag one of its containerships in India, reportedly a ‘first’ by a global mainline carrier.

An official ceremony, set up by the carrier with Nhava Sheva Free Port Terminal (NSFT) in Nhava Sheva port (JNPA) on 28 April will mark the re-flagging of the currently Malta-registered 2,592 teu CMA CGM Vitoria.  NSFT is a 50:50 joint venture between CMA CGM and Mumbai-based JM Baxi Group.

Sources said the 2008-built ship would continue to operate on CMA CGM’s India-Gulf-Red Sea Express (BIGEX-2) service, which offers four weekly sailings in a vessel-sharing deal with Saudi Arabia’s Folk Maritime and Asyad Shipping of Oman, on a 28-day rotation of Colombo-Mangalore-Nhava Sheva-Mundra-Jebel Ali-Djibouti-Aden-Colombo.

CMA CGM is also reportedly considering re-registering more mid-size vessels under the Indian flag, responding to the nation’s liberalised policies and incentives for foreign direct investment. A new Indian financial services centre in Gujarat, named Gift City, provides a 100% tax holiday for 10 years for vessels registered in India, in addition to other tax benefits.

During a recent visit by Indian prime minister Narendra Modi to Marseille, CMA CGM CEO Rodolphe Saade promised to scale up the group’s trade profile in India. To that end, a new local entity is said to be being created to step up the recruitment of Indian seafarers, discontinuing an existing third-party arrangement.

Mr Saade also emphasised CMA CGM’s willingness to play a key role in the development of the India-Middle East-Europe Economic Corridor (IMEC), an alternative multimodal routing to the traditional Suez Canal route, aided by the group’s substantial logistics presence in the region.

“With a modern fleet adapted to alternative energy sources and key port hubs in India, the UAE, and the Mediterranean, CMA CGM will be a key contributor to the corridor’s efficiency,” the carrier said.

“Additionally, a network of dry ports along the IMEC rail route, stretching from India through Saudi Arabia and the Middle East to Europe, will leverage the group’s logistics expertise, reinforcing the economic and strategic vision of this alternative trade route.”

The French transport group has also been keen on exploring ship repair and shipbuilding opportunities at Indian shipyards, an area Maersk has already ventured into via a strategic memorandum of understanding with Cochin Shipyard (CSL). A Maersk vessel repair service at CSL was planned during the year to steamroll that agreement into a long-term, broader partnership.

CMA CGM, meanwhile, has an expansive network of ocean services out of India, as well as operations inland, including warehousing and intermodal services between key ports and hinterlands.

But the local ship registry interest is more significant, as Indian domestic container tonnage is small: with some 485 India-flagged vessels, around 12 million gross tonnes, plying overseas trades as of June 2024, available data shows.