25 May 2018
INDIA: Ban Lifted on Use of Overseas Vessels for Domestic Cargo Transportation
In a major policy change, overseas-owned merchant ships are to be permitted to transport containerised cargo between any two Indian ports. Prior to this announcement, it was illegal for any non-India-flagged vessel to be employed in such an undertaking.
By removing the restrictions and allowing overseas shipping companies to consolidate and deconsolidate export/import cargo at Indian ports, prior to transhipment to other destinations, the government is looking to boost the competitiveness of the domestic sea freight industry. It is also hoped that logistics costs for manufacturers, suppliers and import/export businesses will fall, boosting the appeal of Indian ports as potential regional transhipment hubs.