Relaxed Cabotage Law to drive growth in container logistics

In a bold and far-reaching move, India’s decision to relax its cabotage law has sent ripples throughout the country’s container logistics industry, promising to usher in a new era of competition, efficiency, and opportunities while also presenting challenges to domestic players. “The relaxation of cabotage laws is set to intensify competition in India’s container logistics sector. Foreign-flagged ships can now ply Indian coastal routes without the need for permits, injecting a fresh wave of competition into the market. This development is expected to drive down shipping costs and potentially boost India’s global trade presence in the long run. With foreign vessels entering the market, shippers and cargo owners can anticipate more competitive pricing and improved service options. The increased competition will likely push logistics providers to offer cost-effective solutions, benefiting importers and exporters alike. Cost savings and greater efficiency in the transportation of goods are on the horizon.”, said Christian Roeloffs, CEO and Co-Founder, Container xChange. To accommodate the surge in coastal shipping activity, we can anticipate significant investments in port infrastructure and connectivity enhancements. This anticipated development could lead to faster turnaround times, increased cargo handling capacity, and more streamlined logistics operations, ultimately reducing overall transportation costs.