The recent government decision to relax cabotage for transhipment of ex-im containers at Indian ports seems to be having the desired effect.
According to analysts, transhipment of Indian cargo at ports in neighbouring countries has come down and the said volumes at Indian ports have increased. In fact, as per an estimate, there has been a more than 40 per cent increase in transhipment at Indian ports in July 2018 over the previous month.
The analysts point out that a definitive positive impact of cabotage relaxation at Indian ports will be visible by the end of the fiscal, with substantial transhipment volumes expected in the next fiscal.
The decision has even led to some neighbouring ports reducing their rates, it was emphasised.
It was in May that the Ministry of Shipping relaxed the cabotage norms to allow foreign flagged vessels, vessels chartered by Indian citizens or companies to ply between Indian ports for transhipment of ex-im boxes and empties, as well as for the domestic movement of certain commodities.
Source: EximPrevious Next