The Coastal trade community, has raised serious concerns over the Shipping Corporation of India’s (SCI) recent operational approach, stating that frequent withdrawal of vessels and sudden schedule disruptions are adversely impacting the growth of the country’s coastal shipping sector.
The trade highlighted that SCI’s repeated vessel cancellations, last-minute service changes, and diversion of ships for chartering have shaken confidence within the trade. According to the community, these actions contradict the Government’s push to shift cargo from road and rail to more sustainable and cost-efficient coastal transport.
However, the current instability in SCI’s coastal services is creating multiple challenges for the trade. The trade and industry warned that reduced PSU participation could lead to private carriers gaining monopoly power, resulting in higher freight rates, unreliable services, and disruption of supply chains for coastal customers. It added that such inconsistency undermines the Government’s strategy to increase coastal cargo volumes and discourages stakeholders who mobilize cargo for SCI.
“As the National Line, SCI has not only commercial responsibilities but also a national obligation to support coastal cargo movement,” the coastal trade noted. Without stable and consistent deployment from SCI, the trade fears that the Prime Minister’s vision of strengthening coastal shipping as a key pillar in India’s logistics network could face setbacks.
The coastal trade community has urged the Ministry to intervene with the following measures:
- Direct SCI to prioritize coastal cargo deployment over chartering activities.
- Secure a firm commitment from SCI for consistent coastal service availability.
- Review SCI’s operational strategy to ensure coastal shipping remains a core focus.
The trade community warned that a weakened SCI presence could leave the coastal trade vulnerable to monopolistic practices by private operators, ultimately harming trade interests and national logistics goals.
The trade community reaffirmed its commitment to supporting Government initiatives aimed at expanding coastal shipping and requested the Ministry’s guidance to ensure SCI fulfils its critical role in developing India’s coastal container trade.