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)