Shipping Companies Increase Operations, Support India's Growth Wave

Shipping lines are expanding capacity to assist India's export boom, with multinationals like as Maersk-Hapag-Lloyd's Gemini Cooperation, MSC, and CMA CGM opening new routes and improving services. This expansion is projected to increase trade efficiency, lower freight costs, and shorten turnaround times.

Merchandise export growth reached 17% year on year in October, with total exports expected to reach $435 billion this fiscal year.

Beginning in February, Maersk and Hapag-Lloyd will offer three dedicated and eight to nine shuttle routes through their Gemini network, while MSC intends a Mediterranean-Asia route connecting Mediterranean ports to North India and Colombo. CMA CGM has inaugurated an Asian route calling on India and plans to add another route to select Middle Eastern ports next year.

"Global logistics dynamics are changing. "With China slowing down, shipping lines are being prompted to expand their routes and frequency in India," said Ajay Sahai, director general and CEO of the Federation of Indian Export Organisations (FIEO). "Geopolitical competition, emerging regional players, and new trade routes, such as Arctic routes through Russia, are reshaping the landscape." This increases competition while simultaneously providing chances to reduce freight costs, he said.

The India-EU trade channel, which accounts for one-quarter of India's international commerce, would see considerable changes. Maersk and Hapag-Lloyd's new services will reduce travel time by up to three days. The additional routes will provide 4-5% capacity per year, connecting Indian ports including Mundra, Nhava Sheva, and Ennore to European hubs such as Rotterdam, Hamburg, and London Gateway.

The Red Sea problem is causing a domino effect on turnaround times and port congestion. Experts believe that the country's exporters and importers will gain from the planned direct routes and calls at several Indian ports.

"Along with improved coverage between India and Europe, we hope to achieve 90% reliability (up from 53% today) through the Gemini network once the entire phase is done. This will enable us to provide clients with greater consistency, allowing them to reach their markets on time and avoid lost sales or added expenditures," said Bhavik Mota, director of regional ocean management for the IMEA (Indian Subcontinent, Middle East, and Africa) area.

According to sources, Maersk anticipates the upgraded India-EU network to increase its Indian market share by 4-5%. The India-Bangladesh-Sri Lanka region, Maersk's third-largest market after the United States and China, is driven by retail and leisure, automotive components, textiles, and medicines.

Competition continues fierce as MSC and CMA CGM, which handle 35-40% of India-Europe containerized commerce, respond with service enhancements and competitive pricing. MSC has increased vessel capacity for reefer or refrigerated cargo and created the Asia-Mediterranean Network 2025, which connects Indian ports such as Mundra, Nhava Sheva, and Vizhinjam with European hubs such as Genoa, Fos-sur-Mer, and Valencia.

The AS2 connects major Asian ports such as Shanghai, Ningbo, and Shekou to Indian ports like Mundra and Nhava Sheva. The airline also maintains a network connecting India, Bangladesh, and the Middle East, with ambitions to add another route in 2025 to improve regional connectivity.

"India's position in global commerce is fast changing, with the United States as our major trading partner and exporter, and the EU accounting for 18-19% of exports. We operate in a non-price-sensitive area, but there is opportunity for better rates and shorter transit times," said Sahai of FIEO.