With capacity still a nagging concern at Sri Lanka’s Colombo port, container lines are devising alternative supply chain solutions for Indian east coast shippers historically relying on the transhipment hub.
MSC, ONE and Maersk are already implementing those strategies, as the container shipping industry races closer to new network alliances.
MSC has opened a dedicated feeder service from Haldia Dock in Kolkata to Vizhinjam, a new transhipment gateway designed to counter the dominance of Colombo. The Haldia shuttle offers a 10-day sailing frequency, bundled with a stop at Paradip port enroute.
Container relays at Vizhinjam, which officially went live last month after a five-month trial run, have gained considerable momentum due to MSC’s growing interest. The carrier has extended its Jade and Dragon loops, covering Asia-N Europe/Mediterranean trades, to Vizhinjam for regular scheduled operations from next month.
ONE has begun moving containers by rail from Kolkata to Nhava Sheva in a scheduled fashion, claiming minimal port waits. To feed cargo for fixed-day train trips, the Singapore-based liner has acquired dedicated space at one of the third-party container freight stations in the Kolkata dock.
“Export/import cargo can be seamlessly routed via Balmer Lawrie CFS, utilising rail services to connect with mainline vessels at Nhava Sheva Port,” ONE told customers. “This enhanced connectivity provides direct access to key global destinations, including the US, Europe, the Mediterranean, and Africa.” it added.
In recent months ONE has cemented its network out of India because of the alliance changes and growth aspirations, as the market develops from diversifying supply chains in Asia.
The carrier is set to launch a new service on the West India-North Europe tradelane early next month, positioning itself to compete with the Gemini Cooperation of Maersk and Hapag-Lloyd.
The Indian Ocean Express (IOX) has a distinct edge over competing routings – broader Indian coverage with three ports of call, Hazira, Mundra. and Nhava Sheva. At the same time, excess capacity should allow Indian shippers some pricing gains, as demand indicators as of now are not strong for the near term.
According to industry observers, carriers need to secure more volumes to fill higher export allocations out of India due to bigger vessel deployments and standalone service operations.
“A challenging market situation calls for extra efforts to win cargo from deeper hinterland shippers frustrated with delays at Colombo,” one carrier sales executive said. “Rail capacity also provides an opportunity for carriers to reposition empties into the deficit region on the return trip.”
Colombo has had serious congestion issues over the past few weeks, forcing some vessels to skip calls there due to excessive berthing delays and productivity concerns.
Persistent delays at Colombo in the past had also prompted Maersk to divert Indian east coast cargo to Nhava Sheva by running block trains in association with Container Corp of India (Concor).
Source: the Loadstar
