India-Gulf container rates plunge as capacity returns and cargo backlogs ease
Container shipping rates from India to the Persian Gulf have significantly softened from the peaks ...
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More mega container lines are considering venturing into Indian coastal operations for domestic cargo movement, amid the allure of greater growth opportunities from the growing diversification of manufacturing in Asia.
Maersk is firming plans to operate coastal shipping services between Indian ports, according to industry sources.
“The carrier is keen to diversify its presence in India,” one insider told The Loadstar, and sources believe Maersk will collaborate with one of regional feeder lines, using India-registered tonnage for coastal trade coverage.
India’s cabotage laws do not allow foreign-flagged carrier participation in domestic cargo transportation, even though, following policy reforms implemented in 2018, there are no restrictions on intra-country movement of export/import containers.
CMA CGM has already signalled its intention to build a fleet of India-flagged ships, paving the way for its entry into the country’s cabotage coastal market. The French carrier is said to be analysing port charges for coastal vessel calls before any official announcement.
According to government policy guidelines, vessel-related charges for coastal service calls should not to exceed 60% of the normal published tariffs applied on foreign-going vessels.
Those incentives, coupled with dedicated coastal cargo berths at several ports, are meant to drive a modal freight shift, from land (trucking) to sea.
In April, CMA CGM reflagged the 2,592-teu CMA CGM Vitoria to the Indian registry, claiming it as a first by a foreign container line.
“The group will register three more vessels in the coming months, underscoring CMA CGM’s commitment to India and its ambition to further develop its presence in the country,” said the liner.
Maersk has previously attempted to use barges along India’s upgraded inland waterways for import cargo distribution into the interior or across the border to Bangladesh, highlighting sustainable logistics solutions and cost efficiency goals.
Apart from a couple of Indian feeder operators, DP World’s Unifeeder and Middle East-based Global Feeder Shipping are the best known names in the Indian coastal market, according to sources.
The outlook for Indian coastal cargo trade seems to be positive, propelled by rapid industrialisation and widespread urbanisation.
Business entities operating at Gujarat International Finance Tec-City (GIFT City) – a business district under construction on the banks of the Sabarmati river – have multiple regulatory advantages, more particularly significant tax exemptions.
Meanwhile, coastal cargo volumes through Indian government or other major ports in fiscal year 2024-25 were up 4% year on year, to some 196m tonnes, according to available data.
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