The Ministry of Ports, Shipping and Waterways has extended permission for foreign-flagged vessels to transport domestic cargo for an additional six months, offering temporary relief to the shipping and logistics sector amid ongoing capacity constraints.
The move allows foreign vessels to continue participating in India’s coastal trade, a segment traditionally reserved for Indian-flagged ships under cabotage rules. Officials said the extension is aimed at ensuring uninterrupted cargo movement and addressing vessel shortages in key routes.
Industry stakeholders have welcomed the decision, noting that it will help ease supply chain pressures, particularly for bulk commodities and containerized cargo. The presence of additional foreign-flagged capacity is expected to stabilize freight rates and improve service availability across coastal corridors.
However, domestic shipowners have expressed concerns over prolonged relaxation of cabotage norms, arguing that continued reliance on foreign vessels could impact the competitiveness of Indian-flagged fleets.
The government indicated that the measure is temporary and will be reviewed based on market conditions and the availability of Indian tonnage. The extension underscores a balancing approach between supporting trade efficiency and promoting the growth of the domestic shipping industry.