MSC, Mærsk & CMA CGM – where rivalry doesn't matter (and where it does)
Behind closed doors
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Major mainline carriers operating out of India are voicing deep concerns over a recent government decision to cancel cabotage relaxations granted in 2018.
According to them, the return of cabotage regulations will seriously hinder their settled supply chain ecosystems, impacting volumes for vessel calls they have estimated for commercial considerations.
The government order revoking the relaxations will come into force in late April.
Carrier concerns essentially revolve around transhipment cargo handling barriers they expect to face in the absence of regulatory support.
Sunil Vaswani, executive director of the Container Shipping Lines Association, said: “The relaxation resulted in an increase in transhipment at Indian ports, thereby intensifying competition and increasing availability of space and equipment.
“The timely transfer of empty containers between Indian ports enabled availability of empties to exporters, and thereby enhanced export volumes.”
Mr Vaswani also claimed transhipment traffic at Indian ports had climbed substantially since the relaxation – JNPA (Nhava Sheva), for example, saw volumes soar from 300 to 400 boxes a day to about 7,000.
Another, even more apt, example is Vizhinjam, a new hub in southern India, which, Mr Vaswani said had already been handling in excess of 100,000 teu a month of just transhipment volumes, reporting vertical growth within just a year of operations.
Adani Ports-managed Vizhinjam has made headlines as a growing container relay point for the Indian region, taking on the historical might of Colombo Port in Sri Lanka.
According to the association, the access to coastal trades had also been helpful in reducing long-haul shipping costs for shippers, in addition to making coastal transportation rates more competitive, with better supply-demand dynamics.
“Increased vessel calls and revenues for Indian ports are the further outcomes of relaxation of cabotage rules,” Mr Vaswani added.
Indian port data seems to back these claims. JNPA, for example, handled some 360,000 teu from last April 2025 through last month, even though the pace has slowed in the last few months.
But, on 21 January, the government reversed the cabotage relaxation, saying it hadn’t yielded the desired trade goals.
“Despite the intent of the said orders, representations have been received from stakeholders highlighting that the objectives have not been achieved, with issues such as increased freight costs, shortage of containers, predatory practices by foreign carriers, and stagnation in the Indian-flagged container fleet persisting,” stated India’s Ministry of Ports and Shipping.
Ironically, Indian policymakers have been actively seeking private investment participation in maritime development, including for hub development, with some early tangible success.
CMA CGM chairman and CEO Rodolphe Saadé, on his visit to India this week, offered further investment support in multiple sectors, saying the group was “actively exploring opportunities to partner with key stakeholders across India on initiatives designed to strengthen the country’s container manufacturing capabilities, promote sustainable ship recycling and support the development of domestic container shipping”.
Meanwhile, it remains to be seen how mainline operators will work through the coming transhipment challenges. It should also be noted that they have, thus far, been wary of investing in pure standalone coastal shipping services along the Indian coast.
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