Govt moves to exempt VSA's among container lines
PORTS & SHIPPING

Govt moves to exempt VSA's among container lines

The Union government is contemplating exempting global container shipping lines from India's antitrust laws, provided that at least 5% of the capacity on any given route, measured in twenty-foot equivalent units (TEUs), is serviced by Indian-flagged vessels. The initiative is intended to bolster the participation of local fleet owners in the highly exclusive mainline container shipping sector, which is currently dominated by international carriers such as Mediterranean Shipping Company, Maersk, CMA CGM, and others. Vessel sharing agreements among container lines have been exempt from Section 3 of India's Competition Act since 2012, with the most recent exemption expiring in July. These agreements are monitored by the Directorate General of Shipping, India's maritime regulatory body, and are only valid if they do not involve anti-competitive practices like price fixing or capacity limitation. A government official, speaking anonymously, indicated that foreign shipping lines would need to ensure Indian participation to maintain this exemption, and failing to comply could result in scrutiny by the Competition Commission of India. The official highlighted that this measure would provide Indian fleet owners with opportunities to invest in container ships and play a more prominent role in international shipping routes. The Shipping Corporation of India Ltd (SCI), currently India’s only mainline container ship operator, owns two container ships and leases two others. One of these vessels is part of a weekly service run by Mediterranean Shipping Company between India and Europe, with SCI contributing just one vessel to the service. Exporters have long been advocating for the establishment of a national container shipping company, citing concerns over foreign carriers' inconsistent service, particularly during periods of market volatility and rising freight rates. This situation has been exacerbated by geopolitical tensions and the impact of the Red Sea crisis on global shipping.

The Union government is contemplating exempting global container shipping lines from India's antitrust laws, provided that at least 5% of the capacity on any given route, measured in twenty-foot equivalent units (TEUs), is serviced by Indian-flagged vessels. The initiative is intended to bolster the participation of local fleet owners in the highly exclusive mainline container shipping sector, which is currently dominated by international carriers such as Mediterranean Shipping Company, Maersk, CMA CGM, and others. Vessel sharing agreements among container lines have been exempt from Section 3 of India's Competition Act since 2012, with the most recent exemption expiring in July. These agreements are monitored by the Directorate General of Shipping, India's maritime regulatory body, and are only valid if they do not involve anti-competitive practices like price fixing or capacity limitation. A government official, speaking anonymously, indicated that foreign shipping lines would need to ensure Indian participation to maintain this exemption, and failing to comply could result in scrutiny by the Competition Commission of India. The official highlighted that this measure would provide Indian fleet owners with opportunities to invest in container ships and play a more prominent role in international shipping routes. The Shipping Corporation of India Ltd (SCI), currently India’s only mainline container ship operator, owns two container ships and leases two others. One of these vessels is part of a weekly service run by Mediterranean Shipping Company between India and Europe, with SCI contributing just one vessel to the service. Exporters have long been advocating for the establishment of a national container shipping company, citing concerns over foreign carriers' inconsistent service, particularly during periods of market volatility and rising freight rates. This situation has been exacerbated by geopolitical tensions and the impact of the Red Sea crisis on global shipping.

Next Story
Infrastructure Transport

Metro Line 2B Phase 1 to Boost Realty in Mumbai’s Eastern Suburbs

Mumbai’s real estate sector is set for a major boost as Phase 1 of Metro Line 2B, between Mandale and Diamond Garden, nears completion. The Mumbai Metropolitan Region Development Authority (MMRDA) has confirmed that mandatory rectifications are done, and inspections by the Commissioner of Metro Railway Safety (CMRS) have been carried out. The 5.39-km stretch with five stations forms part of the larger DN Nagar–Mandale corridor, designed to ease congestion and improve east–west connectivity. Passenger operations are expected by December 2025, with the full line slated for 2027. ..

Next Story
Resources

WattPower wins Best Inverter award at Global Solar Expo 2025

WattPower, a leading renewable energy solutions provider, has won the award for “Best Inverter in the Utility Segment” at the Global Solar Expo 2025. The recognition underscores the company’s commitment to delivering reliable, high-performance and future-ready solar solutions for large-scale projects. At the forefront of utility-scale solar, WattPower manufactures advanced string inverters that directly feed power into the Indian grid. With robust technology, high-quality components and comprehensive product lifecycle support, its solutions stand among the most sophisticated in the ..

Next Story
Real Estate

Awfis delivers 67,000 sq. ft. innovation hub for eBay in Bengaluru

Awfis Space Solutions, India’s largest flexible workspace provider and the first publicly listed workspace solutions platform, has partnered with eBay to establish a 67,000 sq. ft. innovation hub at Embassy Tech Village, Bengaluru. The mandate covers design, build and management of the new office, which will act as a strategic hub supporting diverse functions and accelerating eBay’s AI-first commerce strategy. The centre will focus on artificial intelligence, engineering, product development and applied research, strengthening eBay’s growth in India. Embassy Tech Village, North Beng..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?