News
India's Ministry of Shipping has relaxed cabotage restrictions for ports which tranship at least 50% of the container handled by them. The measure will enable shipping lines to consolidate Indian import/export and empty containers at transhipment ports in India for onward transportation to destination ports by main shipping lines.
With the cabotage relaxation, foreign vessels can also transport import/export and empty containers from any port in India to transhipment port and vice versa, in addition to Indian vessels. The spare capacity of the foreign flag ships which could not be utilized earlier due to cabotage restrictions will now be effectively utilized enabling them to offer competitive container slot rates to exporters and importers leading to competition led efficiency in container transportation and lower logistic costs for the shippers.
The container port seeking cabotage relaxation for transhipment port would have to achieve transshipment of 50% or more of the import/export and empty cargo handled in one year. New transhipment ports will have a gestation period of one year and is required to achieve the stipulated transhipment traffic of 50% of the traffic handled in the second year. Inability of the port to transship at least 50% of the containers handled in a year results in revocation of the said relaxation.
The port whose relaxation is revoked will not be considered for cabotage relaxation for next three years. The container handling port will also be required to provide monthly container traffic data for monitoring to Directorate General of Shipping and Ministry of Shipping by 5th of the following month.
