+
GOI to exempt VSA to boost Indian container shipping presence
PORTS & SHIPPING

GOI to exempt VSA to boost Indian container shipping presence

The Indian government is considering exempting Vessel Sharing Agreements (VSAs) in the container shipping sector from the country’s antitrust regulations for three years, provided that Indian-flagged vessels account for at least 5% of the total space under such agreements and that a similar 5% is allocated to Indian non-vessel operating common carriers (NVOCCs), according to a draft notification.

The draft aims to enhance competition, promote transparency, and ensure better representation of Indian shipping lines and NVOCCs in the global container trade, while balancing the interests of stakeholders in the maritime sector, the Directorate General of Shipping (DG Shipping) stated.

A non-vessel operating common carrier is a logistics provider that consolidates cargo without owning or operating ships, acting as an intermediary between shipping companies and their customers. The DG Shipping will oversee VSA operations to ensure compliance with these conditions during the three-year exemption from Section 3 of the Competition Act. Any suspected violations, such as non-transparent fees or discriminatory practices, will be investigated, and the findings shared with the Competition Commission of India.

VSAs among container lines have been exempted from India’s antitrust regulations since 2012, with the most recent exemption ending in July after a three-year extension. The current exemption applies to carriers of any nationality operating from Indian ports, provided they do not engage in practices like price-fixing or market allocation.

Indian ship owners have a minimal presence in the global container trade, with nearly 99% of India’s export-import container traffic managed by international carriers such as Mediterranean Shipping Company, Maersk, CMA CGM, Hapag Lloyd, and others. The state-run Shipping Corporation of India Ltd (SCI), the only Indian mainline container operator, currently manages two container ships and two hired vessels, with just one vessel participating in the IPAK service run by Mediterranean Shipping Company on the India-Europe route.

The disruption of the global supply chain during the pandemic, coupled with geopolitical tensions in the Middle East, has led local exporters to push for a national container shipping company to reduce dependence on foreign carriers. To address this, SCI is planning to acquire four more second-hand container ships, in addition to the one for which it had floated a tender earlier this year, as stated by Chairman and Managing Director Captain Binesh Kumar Tyagi.

At a recent meeting chaired by Commerce Minister Piyush Goyal on September 18 to address exporters' challenges, the Ministry of Ports, Shipping and Waterways announced that SCI would acquire five container ships. "Some of these will be 8,000-12,000 twenty-foot equivalent units (TEU) capacity vessels, while 1-2 smaller ships may be used for coastal operations," Capt. Tyagi said, adding that actions are underway as directed by the ministry.

Meanwhile, The Great Eastern Shipping Company Ltd, India’s largest private ocean carrier, is also evaluating the possibility of entering the container shipping market. “We will evaluate the container (shipping) space. It’s on our radar but not a priority at the moment,” said Rahul Sheth, General Manager, during the company’s earnings call on August 1.

(ET)

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

The Indian government is considering exempting Vessel Sharing Agreements (VSAs) in the container shipping sector from the country’s antitrust regulations for three years, provided that Indian-flagged vessels account for at least 5% of the total space under such agreements and that a similar 5% is allocated to Indian non-vessel operating common carriers (NVOCCs), according to a draft notification. The draft aims to enhance competition, promote transparency, and ensure better representation of Indian shipping lines and NVOCCs in the global container trade, while balancing the interests of stakeholders in the maritime sector, the Directorate General of Shipping (DG Shipping) stated. A non-vessel operating common carrier is a logistics provider that consolidates cargo without owning or operating ships, acting as an intermediary between shipping companies and their customers. The DG Shipping will oversee VSA operations to ensure compliance with these conditions during the three-year exemption from Section 3 of the Competition Act. Any suspected violations, such as non-transparent fees or discriminatory practices, will be investigated, and the findings shared with the Competition Commission of India. VSAs among container lines have been exempted from India’s antitrust regulations since 2012, with the most recent exemption ending in July after a three-year extension. The current exemption applies to carriers of any nationality operating from Indian ports, provided they do not engage in practices like price-fixing or market allocation. Indian ship owners have a minimal presence in the global container trade, with nearly 99% of India’s export-import container traffic managed by international carriers such as Mediterranean Shipping Company, Maersk, CMA CGM, Hapag Lloyd, and others. The state-run Shipping Corporation of India Ltd (SCI), the only Indian mainline container operator, currently manages two container ships and two hired vessels, with just one vessel participating in the IPAK service run by Mediterranean Shipping Company on the India-Europe route. The disruption of the global supply chain during the pandemic, coupled with geopolitical tensions in the Middle East, has led local exporters to push for a national container shipping company to reduce dependence on foreign carriers. To address this, SCI is planning to acquire four more second-hand container ships, in addition to the one for which it had floated a tender earlier this year, as stated by Chairman and Managing Director Captain Binesh Kumar Tyagi. At a recent meeting chaired by Commerce Minister Piyush Goyal on September 18 to address exporters' challenges, the Ministry of Ports, Shipping and Waterways announced that SCI would acquire five container ships. Some of these will be 8,000-12,000 twenty-foot equivalent units (TEU) capacity vessels, while 1-2 smaller ships may be used for coastal operations, Capt. Tyagi said, adding that actions are underway as directed by the ministry. Meanwhile, The Great Eastern Shipping Company Ltd, India’s largest private ocean carrier, is also evaluating the possibility of entering the container shipping market. “We will evaluate the container (shipping) space. It’s on our radar but not a priority at the moment,” said Rahul Sheth, General Manager, during the company’s earnings call on August 1. (ET)

Next Story
Infrastructure Urban

Delivering metals in 24 hours with AI

India’s metal supply chain has long struggled with delays, fragmentation and lack of transparency, forcing purchase teams to chase vendors and juggle uncertain stock. Enlight Metals is tackling these inefficiencies with an AI-powered aggregation platform, multilingual voice-enabled procurement and strategically located dark stores that enable 24-hour delivery – transforming how OEMs, EPCs and infrastructure players source their metals. In a conversation with CW, Dhananjay Goel, Director, and Vedant Goel, Director, shares how the company is reshaping procurement. What problem..

Next Story
Infrastructure Urban

Silvin's CPVC Additive Gets NSF® Certification for Safety

Silvin Additives, a prominent manufacturer of PVC and CPVC additives, has secured the NSF® Guideline 533 certification for its CPVC Super1Pack formulation. This certification affirms the additive’s compliance with stringent international health and safety standards for products intended for drinking water applications.Awarded by NSF, a globally respected public health and safety authority based in Michigan, United States, the certification is granted only after rigorous product testing and inspection. NSF® Guideline 533 specifically assesses the safety of chemical ingredients used in produ..

Next Story
Infrastructure Urban

Mitsubishi Halts Offshore Wind Projects in Japan

Mitsubishi Corporation (MC) has announced its decision to withdraw from three major offshore wind projects off the coast of Japan due to a significant shift in global business conditions. The projects were being developed through a consortium led by its subsidiary, Mitsubishi Corporation Offshore Wind Ltd., and were located off the shores of Noshiro City, Mitane Town, and Oga City in Akita Prefecture; Yurihonjo City in Akita Prefecture; and Choshi City in Chiba Prefecture.The company stated that following a review initiated in February 2025, it concluded the projects were no longer viable. The..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?