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.