News / Hapag-Lloyd eyes India growth with ship reflagging and port push

German liner giant Hapag-Lloyd has now jumped on the bandwagon of reflagging containerships in India, signalling further growth ambitions out of the emerging market.

The carrier yesterday signed a memorandum of understanding (MoU) with Indian authorities, pledging to reflag up to four of its containerships to the local flag.

“India is one of the most important growth markets in global trade and a key strategic partner for Hapag-Lloyd,” CEO Rolf Habben Jansen said in a statement.

“Through this letter of intent, we want to further strengthen our long-standing relationships with India and support the country’s ambitions to expand its maritime capabilities, enhance global connectivity and advance sustainable shipping,” Mr Habben Jansen noted.

But those plans appeared to be tentative at this moment for the world’s fifth-largest container carrier, which is in the midst of pursuing regulatory approvals for its much-hyped deal to acquire Israeli carrier Zim.

“At this stage, no specific timeline, vessel profile or capacity range has been defined. Any reflagging would remain subject to further discussions, internal assessments, commercial considerations and applicable legal and regulatory requirements,” Hapag-Lloyd said.

Maersk and CMA CGM have already reflagged a few of their vessels in India, while MSC last year announced a similar intent.

Historically, Panama, Liberia and the Marshall Islands have been the “flags of convenience” hot spots for most ocean carriers because of significant tax and regulatory advantages.  So, even a marginal shift away from these attractive destinations to India is a noteworthy win for New Delhi as it attempts to become a maritime powerhouse.

Hapag-Lloyd is also making a bid to cement its equal ownership joint venture with Mumbai-based JM Baxi Group, in the field of port terminal and inland logistics operations.

Both partners would participate in the upcoming development of container terminals at Vadhavan Port, off the Nhava Sheva/Mumbai coast, as another MoU Hapag-Lloyd signed with the Jawaharlal Nehru Port Authority (JNPA) suggests.

“As one of India’s major upcoming infrastructure projects, Vadhavan Port is expected to play an important role in strengthening the country’s maritime logistics network. Hapag-Lloyd intends to contribute its global shipping and terminal expertise to support this development,” it said.

With a strengthening terminal foothold in India, JM Baxi Ports & Logistics handles over 3m teu annually.

Building a ship recycling ecosystem in India is another investment target goal for Hapag-Lloyd, collaborating with JM Baxi. Initial plans call for a yard capacity to recycle up to 100 vessels.

“The intended cooperation aims to support the development of recycling capacity in India aligned with the EU Ship Recycling Regulation (SRR), currently regarded as the leading international standard,” the carrier added.

That move mirrors an early 2025 MoU Maersk set up with Cochin Shipyard (CSL) to seek ship repair services there.

For CSL, an order recently placed by CMA CGM for the construction of six 1,700 teu LNG-powered vessels marked a watershed moment, arguably accelerating the pace of manufacturing diversification within Asia.