India’s Export Growth Accelerated by New Shipping Services and Routes

India is set to achieve higher export figures as shipping lines expand capacity. Maersk-Hapag-Lloyd’s Gemini Cooperation, MSCs, and CMA CGM have launched new services and upgraded their offerings. This expansion is expected to increase the efficiency of trade and decrease freight costs and time taken in the process. While the merchandise export growth rate was 17% YoY in October, the total export is expected to be $435 billion this fiscal.

From February next year Maersk and Hapag-Lloyd plan to start three dedicated and eight to nine strings under the Gemini network, and MSC is developing a Med Asia string that will connect Mediterranean ports to North India and Colombo. CMA CGM recently started an Asian service that includes a call to India and may inaugurate a second string that serves selected Middle East destinations next year.

Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations (FIEO) said, "Geopolitical competition, emerging regional players, and new trade avenues, such as Arctic routes via Russia, are reshaping the landscape. This intensifies competition but also offers opportunities to lower freight costs." 

The trade relation between India and the European Union, which constitutes a quarter of Indian foreign trade, will undergo major enhancements. The two new services from Maersk and Hapag-Lloyd will reduce transit times by up to three days. The new additional strings will grow the annual capacity by 4%-5% and will join Indian ports, such as Mundra, Nhava Sheva, and Ennore to European ports, for example, Rotterdam, Hamburg, and London Gateway. 

The Red Sea crisis is affecting it in several ways including; The Red Sea crisis is adding shocks to Turn-around-times, and congestion at many ports. Since ZIM intends to offer direct calls at numerous ports across the country, the nation’s exporters and importers are expected to gain, analysts said.