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India’s Export Surge Attracts Major Shipping Lines

by Geraldine S.
08/16/2024
in Global Trade

India’s push to boost manufacturing is drawing increased interest from global container lines seeking growth opportunities in emerging markets. Mediterranean Shipping Company (MSC) is set to launch a new weekly Asia-South America East Coast service, connecting Indian cargo through Colombo, Sri Lanka. The Carioca service will include direct calls at Rio de Janeiro, Paranagua, Imbituba, Itajai, and Santos, with additional coverage for Paraguay, Montevideo, and Buenos Aires through relays at Rio.

MSC Agencies (India) announced that this service will enhance connectivity and frequency for cargo originating from India. The first sailing of the Carioca service will be aboard the MSC Nairobi, arriving in Colombo on September 10. This development comes as Indian exports to Latin America are gaining momentum, with global importers diversifying their procurement sources beyond China. Key commodities exported from India to the region include automobiles and polyethylene products. Data indicates that the value of Indian exports to Latin America and the Caribbean increased by 19% year-on-year in fiscal year 2022-23, reaching approximately $22.4 billion.

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In addition, other carriers are expanding their services to strengthen India-Latin America trade routes. Hyundai Merchant Marine (HMM) has extended its Asia-Latin America service, known as FIL, to include a stop at Kattupalli port near Chennai. HMM is also consolidating cargo from western India using its China-India (CIX) service, which stops at Nhava Sheva and Mundra.

Despite a recent 1% dip in Indian merchandise exports by value in July, following a three-month period of growth in the new fiscal year starting April, the Federation of Indian Export Organisations remains optimistic. Ashwani Kumar, President of the Federation, acknowledged the challenges posed by rising international freight costs and logistical disruptions but emphasized a positive long-term outlook for the export sector.

Stay informed with supply chain news on The Supply Chain Report. Learn more about international trade at ADAMftd.com.

#SupplyChainNews #SupplyChainNews #IndiaTrade #GlobalShipping #ExportGrowth

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