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Major carriers are drawn to coastal freight from India

Additionally, CMA CGM is the first international shipping company to register a containerized vessel at India’s GIFT (Gujarat International Finance Tec) City’s International Financial Services Centre.
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Amid Asia’s economic diversification, global container lines appear to be targeting India’s expanding coastal freight demand as their next target. Maersk and CMA CGM are aggressively exploring the possibility of entering the coastal shipping business between Indian ports. Even though New Delhi in 2018 removed the barrier for containerized freight meant for transhipment, allowing foreign-flagged liner operators to aggregate volumes at their direct ports of call, cabotage regulation surrounding so-called protectionist policies has kept India-flagged tonnage limited.

Following the French carrier’s announcement last week that it would reflag the originally Malta-registered CMA CGM Vitoria, one of four ships it has deployed on its BIGEX service between India, the Middle East, and the Red Sea—a four-string operation—with weekly calls at India’s Nhava Sheva and Mundra ports, coastal entry may now be simpler and faster for CMA CGM. The company plans to register three more vessels in the upcoming months in addition to its first local flag registration, demonstrating CMA CGM’s dedication to India and desire to increase its footprint there.

Additionally, CMA CGM is the first international shipping company to register a containerized vessel at India’s GIFT (Gujarat International Finance Tec) City’s International Financial Services Centre.  According to reports, CMA CGM India and CMA CGM Mediterranea will follow the Malta-flagged CMA CGM Manaus in that lineup. India’s Prime Minister Narendra Modi’s recent visit to CMA CGM’s Marseille headquarters highlights the company’s determination to increase its footprint in India in the areas of shipping, intermodal transportation, logistics, and terminal operations.  Specifically, CMA CGM has established a crew management office for its fleet in Mumbai.

As the Indian government works hard to convert more modes of transportation from trucking to more environmentally friendly inland waterways and its extensive river network, interest in coastal services is growing. But because of issues with infrastructure and dependability, that endeavor hasn’t produced market growth that meets the government’s intended goals.  However, according to sources, the participation of international ocean carriers may further boost the Indian coastal market’s vibrancy and growth potential. Simultaneously, the growing geopolitical tension between India and Pakistan has caused some disruptions to regional trade, as both governments have prohibited the passage of goods from one another through their ports.

As a result, mainline ocean services serving both India and Pakistan are now being realigned to offer alternatives, disrupting normal supply chains. The ripple effects have also spilled into air freight verticals due to airspace restrictions. Additionally, Indian airports close to the border region, as many as 27, have been told to stop operations until 10 May as part of security alert measures. Any disruption-linked cost impact ultimately finds its way to cargo owners on their freight bills.

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