India’s Export Boom Attracts Major Shipping Lines to New Markets

India’s growing export market is drawing attention from global container lines seeking new opportunities outside their usual routes. The latest to join this trend is MSC, which is launching a weekly Asia-South America East Coast service for Indian cargo via Colombo, Sri Lanka.

The new service, known as the Carioca, will make direct calls at key South American ports including Rio de Janeiro, Paranagua, Imbituba, Itajai, and Santos. Additionally, MSC will offer extended coverage for Paraguay, Montevideo, and Buenos Aires through transshipments at Rio.

MSC Agencies (India) announced, “This service will enhance coverage and improve connectivity and frequency for Indian-origin cargo.” The inaugural sailing, aboard the MSC Nairobi, is scheduled to arrive in Colombo on September 10.

This expansion comes as India’s exports to Latin America gain significant momentum, driven by global importers diversifying away from China. Key Indian exports to the region include automobiles and polyethylene products. Data from the fiscal year 2022-23 shows that India’s exports to Latin America and the Caribbean surged by 19%, reaching approximately $22.4 billion.

Other shipping lines are also increasing their focus on India-Latin America trade routes. HMM has extended its Asia-Latin America service, known as FIL, to include Kattupalli port near Chennai. The carrier is also consolidating cargo from western India via its China-India (CIX) service, with stops at Nhava Sheva and Mundra.

Despite a slight 1% dip in Indian merchandise exports in July after three months of growth, Ashwani Kumar, president of the Federation of Indian Export Organisations, remains optimistic. He noted that while geopolitical challenges have impacted profitability and logistics, the long-term outlook for India’s export trade remains strong.

Source: The Loadstar