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Carriers reroute Indian cargo to Colombo to escape traffic issues

MSC has launched a dedicated feeder route from Kolkata’s Haldia Dock to Vizhinjam, a new transshipment gateway.
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Container lines are coming up with alternate supply chain options for Indian east coast shippers who have historically relied on the transshipment hub because capacity at Sri Lanka’s Colombo port is still a persistent issue.  As the container transport sector rushes toward new network alliances, MSC, ONE, and Maersk are already putting those tactics into practice.

In an effort to challenge Colombo’s hegemony, MSC has launched a dedicated feeder route from Kolkata’s Haldia Dock to Vizhinjam, a new transshipment gateway. The Haldia shuttle has a 10-day sailing schedule that includes an on-route stop at the port of Paradip. Because of MSC’s increasing interest, container relays at Vizhinjam, which formally went online this month following a five-month trial run, have accelerated significantly. For regular scheduled operations starting next month, the airline has extended its Jade and Dragon loops, which cover trade between Asia and North Europe and the Mediterranean, to Vizhinjam. 

With the promise of short port queues, ONE has started transporting containers by train from Kolkata to Nhava Sheva on a scheduled basis. The Singapore-based liner has reserved space at one of the third-party container freight stations in the Kolkata dock to feed cargo for fixed-day train excursions.  As the industry grows from varied supply chains in Asia, ONE has strengthened its network outside of India in recent months due to alliance changes and expansion goals.  In order to compete with the Gemini Cooperation of Maersk and Hapag-Lloyd, the carrier plans to introduce a new route on the West India-North Europe trade lane early next month.

With three ports of call—Hazira, Mundra, and Nhava Sheva—the Indian Ocean Express (IOX) has a clear advantage over other routes in terms of wider Indian coverage. However, as demand indicators are currently weak for the immediate future, extra capacity should allow Indian shippers to obtain some pricing advantages.  Industry watchers say that because of larger vessel deployments and stand-alone service operations, carriers must acquire higher volumes to meet higher export allocations out of India.

Over the past few weeks, Colombo has experienced severe congestion, which has caused considerable berthing delays and productivity challenges, prompting some vessels to avoid stops there.  Maersk also decided to run block trains in collaboration with Container Corp of India (Concor) to reroute Indian east coast goods to Nhava Sheva due to previous delays at Colombo.

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