Ocean carriers increase shipping capacity for Indian trades as economy expands

India-US trade is expected to experience a boost as carriers anticipate diversifying supply chain patterns in the Asian region. Singapore-based Ocean Network Express (ONE) has announced a new solo connection between West India and US east coast, with the new WIN service starting in May and providing a weekly rotation to several ports, including New York and Savannah. ONE is also expected to offer co-loading space for other carriers, and the service will feature three ports of call on the Indian leg.

The new service is expected to help ONE pick up incremental hinterland volumes out of north-west India, especially with the Hazira call being a gateway to industrially vibrant areas of South Gujarat, North Maharashtra, and Central India. With capacity increasing and rates trending downward, India-US trade is facing a ‘supply overhang’ scenario, placing pressure on carrier rate levels. Additionally, CMA CGM is set to launch a direct service between India and China in December as part of frenzied network expansion by predominantly Asian carriers, while other carriers have also opened new intra-Asia connections to and from Indian ports.

Ravi Jakhar, chief strategy officer at Allcargo Group, is optimistic about strong economic growth in the region that is expected to drive a buoyant outlook for intra-Asia trade. Meanwhile, S&P Global has increased its GDP growth forecast for the Indian economy to 6.4% in the current fiscal year, citing robust domestic momentum offsetting headwinds from high food inflation and weak exports. India’s merchandise export trade in October also saw a 6% increase year on year by value, according to provisional official data.

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