India eyes dedicated container line to wean shippers off foreign carriers
India’s government is considering setting up a dedicated container shipping line to ease local shippers from an over-dependence on foreign-flagged carriers.
The new entity is expected to be named Bharat Container Line, and feature equity participation from public and private organisations.
According to reports, some 100 containerships will be procured or chartered for the new venture.
The move ties in with an ambitious $3bn “maritime development fund” New Delhi has announced as part of its annual budget for the fiscal year 2025-26, which “will directly benefit in financing for ship acquisition”, according to India’s shipping ministry.
“It aims at boosting India-flagged ships’ share in the global cargo volume by up to 20% by 2047,” it added.
Indian policymakers had been under tremendous pressure from exporters and industry groups to rein-in foreign lines exploiting supply chain disruption by charging high freight rates and other surcharges on Indian cargo.
The Federation of Indian Export Organisations (FIEO), at the vanguard of that push, persistently called for India-registered tonnage participation in major trade routes, in order to make domestic goods more competitive in international markets.
“A 25% [market] share by an Indian shipping line can save $50bn a year, and will also reduce arm-twisting by foreign shipping lines on medium and small businesses,” the export group had told the government.
FIEO president Ashwani Kumar last week welcomed the new budget proposals, which he called “a series of strategic initiatives aimed at bolstering India’s foreign trade sector, especially exports”.
“It will also help the country in saving a huge amount of foreign exchange remitted in the US dollar to foreign shipping lines,” he added.
Meanwhile, responding to the constant appeals, Shipping Corporation of India (SCI), the country’s only long-haul carrier, recently unveiled plans to add more box ships to its severely depleted fleet.
But with the global container shipping industry navigating some volatile conditions, some experts have expressed scepticism pver the government plans.
“The government is indeed demonstrating a stronger intent to address trade concerns, which is laudable,” pne industry observer told The Loadstar. “But it’s not going to be a quick fix.”
According to another source, consortium development remains paramount to serving customer demands and gaining market share.
In 2018, New Delhi opened coastal shipping markets to foreign-flagged container carriers by liberalising its cabotage rules. But that waiver is also under review, due to “counter-productive” results.
“Indian container shipping entered a phase of stagnation and decline,” said India’s director general of shipping. “It seems Indian operators have gradually lost market share, leading to a growing reliance on foreign vessels for the transport of goods.”
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