India has reversed its previous stance by reinstating the cabotage waiver for foreign-flagged container ships. This policy change permits international carriers to move export-import (EXIM) containers between different Indian ports without restrictions. The decision is intended to provide greater policy stability and support India's ambition to become a significant transshipment hub, particularly as global shipping routes face ongoing disruptions.
This move comes as carriers are increasingly adjusting their service networks due to security risks in critical waterways like the Red Sea and Suez Canal, leading to altered vessel deployments. The flexibility offered by the cabotage waiver allows these carriers to more efficiently utilize Indian ports for transshipment operations, reducing reliance on foreign transshipment hubs.
For freight forwarders and shippers, this reinstatement means increased options for routing cargo to and from India. It is expected to improve schedule reliability and potentially reduce transit times and costs by enabling direct calls and more efficient feeder services within India. The enhanced competition and flexibility could also lead to more stable freight rates and better capacity utilization for cargo moving through Indian gateways, making the country a more attractive logistics destination.
