Carriers Boost India–Gulf Shuttle Loops as Long-Haul Networks Face Middle East Disruptions

Mainline container carriers are increasingly redeploying capacity into short-sea shuttle services out of India as the Middle East conflict continues to disrupt long-haul schedules and network reliability. With services to key Gulf hubs facing operational uncertainty, regional loops are emerging as a practical workaround to keep Indian export and import supply chains moving.

Industry sources indicate that Hapag-Lloyd is evaluating an ad-hoc shuttle connection from Kandla on India’s west coast to UAE ports such as Khor Fakkan and Fujairah, mirroring a concept already rolled out by CMA CGM on the India–Middle East trade. The German carrier benefits from dedicated capacity and operational flexibility at Kandla through its joint-venture with JM Baxi, in which it holds a 40% stake via Hanseat Global Terminals (HGT). The proposed shuttle follows a recent high-profile call by the large vessel Seaspan Ganges at nearby Pipavav, where Middle East-bound containers were discharged in what is claimed to be the biggest containership call handled by the APM Terminals-operated facility.

According to Pipavav Port, the Seaspan Ganges call handled 4,512 container moves, equivalent to 8,454 teu, with berth productivity of around 120 moves per hour, showcasing the port’s ability to manage sizeable volume swings created by restructured services. Market observers believe that some of the cargo discharged at Pipavav is likely to be repositioned to Kandla for onward relay to Gulf ports through new or expanded shuttle operations. This model allows carriers to decouple India–Gulf flows from their disrupted long-haul rotations while still maintaining cargo connectivity for shippers.

Hapag-Lloyd had already launched a Kandla-origin shuttle last July, linking Kandla with Jebel Ali, Shuaiba and Shuwaikh on a weekly basis with a nominal capacity of about 550 teu. However, the current Middle East turmoil is understood to have complicated or curtailed this earlier product, prompting the carrier to look again at alternative shuttle structures better aligned with present risk conditions. In parallel, Hapag-Lloyd is also reported to have arranged a slot agreement with UAE-based feeder operator Gulftainer Lines, enabling multiple weekly sailings from India’s west coast to Khor Fakkan.

Reflecting rising operational costs and risk premiums, Hapag-Lloyd has announced an emergency operational recovery surcharge of 100 dollars per container on boxes handled at Khor Fakkan, broadly in line with a similar levy introduced by Gulftainer. The surcharge applies to all trades calling the port, except for FMC-regulated cargo, which is subject to a 30-day filing requirement before such charges can be implemented. For cargo owners, these additional costs come on top of elevated freight rates and insurance costs already associated with operating in a conflict-affected region.

While Hapag-Lloyd adjusts its service design, CMA CGM is simultaneously deepening its structural commitment to the Indian market through vessel reflagging initiatives. The French carrier is preparing to register a fifth containership under the Indian flag, the 2,592 teu CMA CGM Vila Do Conde, which is currently flagged in Malta according to industry reports. CMA CGM previously reflagged similar-sized tonnage such as CMA CGM Vitoria, CMA CGM Manaus and CMA CGM Diamond, taking advantage of India’s more liberal tonnage tax regime and other incentives announced over the past year.

These policy changes have accelerated carrier interest in India flagging, with Maersk and MSC also following CMA CGM’s lead in shifting some vessels into the Indian registry. CMA CGM has described the reflagging programme as a signal of its long-term commitment to India and its ambition to grow its presence in one of the world’s fastest-expanding container markets. For Indian ports and logistics stakeholders, the combination of more India-flagged tonnage and flexible regional shuttles could strengthen resilience and improve service options during a period of heightened geopolitical risk in the wider Middle East corridor.