Recently, the Indian Ministry of Shipping announced the relaxation of India’s cabotage law. This will enable global shipping lines to carry EXIM containers along India’s coast.
With the relaxation of the cabotage law, foreign ships carrying containers will be able to tranship at Indian ports, as well as carry empty containers.
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Maersk welcomed this development, as it believes that it will improve competition, which will benefit local importers and exporters. Indian ports will also benefit as they will be able to compete for container traffic currently handled in regional hub ports nearby.
The Indian cabotage law is a matter of discussion for many years now, and its relaxation shows that India wants to resolve this issue, and improve its competitiveness.
Moreover, the relaxation will reduce the feedering rates, while it will encourage the use of Indian ports and terminals for aggregation and transhipment purposes.
