Mediterranean Shipping Company (MSC), the world’s largest container carrier, has warned it may move its transshipment base away from India’s Vizhinjam International Seaport in Kerala following recent changes to coastal shipping regulations, industry and government sources said.
The threat comes after the Indian government scrapped three general orders that had relaxed cabotage rules — allowing foreign-flagged vessels to carry certain cargo along the Indian coast without a licence. The Ministry of Ports, Shipping and Waterways reversed these provisions on January 21 as part of a broader effort to prioritise Indian shipping interests, prompting MSC to signal concern about its operations linked to Vizhinjam’s transshipment activities.
Since commencing commercial operations in December 2024, the deep-water Vizhinjam port has rapidly handled container traffic, with MSC’s ultra-large ships accounting for a significant share of vessel calls. More than 95 % of the 1.575 million TEUs handled so far were on MSC ships, underlining the carrier’s critical role in the terminal’s early growth.
Officials said MSC raised the possibility of relocating its transshipment base if the cabotage relaxation was reversed, arguing that restricted coastal runs could affect vessel deployment and feeder operations critical to transshipment activity. While the government maintains that the regulatory shift aims to strengthen domestic maritime interests without disrupting transhipment at Vizhinjam, the threat from MSC highlights tensions between policy goals and commercial strategies at a port seen as pivotal to India’s ambition of reducing reliance on regional hubs such as Colombo and Singapore.