by Lloyd's List
19 February 2025 (Lloyd's List) - THE India-Europe trade is booming but India is looking to reap more of the benefits of the trade for its own shipping sector.
Despite overall capacity on the trade lane increasing by 24.1%, and the average vessel size rising from 9,833 teu to 11,332 teu, after the completion of the latest round of liner alliance re-alignments, there is still a lack of capacity on the trade lane.
Analysts at Alphaliner noted that forward schedules show that there are nine vessels still unable to guarantee weekly sailings on all the main loops in the India-Europe trade, pointing specifically to CMA CGM with a five-vessel deficit and members of the Premier Alliance needing another three vessels to ensure scheduled service.
Alphaliner’s latest figures show 113 vessels trading in dedicated liner services between India and Europe, with most of them also covering ports in the Middle East.
The majority of these vessels, however, continue to route around the Cape of Good Hope. It is unclear if or when the capacity shortage will be alleviated should the Red Sea crisis be resolved.
In addition, the major European-based carriers CMA CGM, Hapag-Lloyd, Maersk and Mediterranean Shipping Co control 83.8% of all capacity on the trade, with MSC, which recently went solo, taking a 29% market share. New Gemini Cooperation partner Hapag-Lloyd, meanwhile, accounts for about one fifth of the capacity on the route.
The new partners will also run the biggest vessels on the route, according to Alphaliner’s analysis of forward schedules. Hapag-Lloyd will deploy ships with an average capacity of 14,957 teu, while Maersk’s ships will average 12,913 teu in capacity.
Meanwhile, minor players in the container trade comprise only 7% of capacity in the trade, with Indian national line Shipping Corporation of India, which has downplayed the container sector in recent years, making up 0.9% of available tonnage with just one 9,034 teu vessel.
It is thus no surprise that India has announced plans to set up a new domestically-owned container carrier called Bharat Container Line, with an initial fleet of 100 vessels, as the government seeks to gain greater control over its export shipments.
The line will focus on Asia, West Asia and Red Sea routes initially before expanding later to Europe, Africa and the Americas.
According to media reports, the new carrier is expected to come under state-owned SCI but under a public-private equity model.
