India's Ministry of Ports, Shipping and Waterways relaxes cabotage for foreign‑flagged ships for six months
→Coastal vessel operators can deploy foreign‑flagged ships on domestic routes
Change
India has authorised foreign‑flagged vessels to carry domestic coastal cargo until October 25, 2026, with directives issued to the Directorate General of Shipping (DG Shipping) to implement the temporary relaxation.
Why it matters
The relaxation reinstates the 2018 exemption that permits foreign‑flagged ships to move export‑import cargo between Indian ports without a specific licence, broadening the vessels eligible to carry coastal and Exim cargo. The ministry framed the measure as a six‑month, time‑limited step to mitigate predicted container and vessel shortages and rising freight costs linked to the West Asia conflict, with a review scheduled after October 25, 2026.
Implications
- — Ports and terminals operations teams at major Indian ports must implement updated acceptance and berthing procedures immediately to process foreign‑flagged vessels under the relaxation — failure to operationalise these procedures will prevent those ports from handling coastal cargo under the temporary measure before October 25, 2026.
- — Procurement and logistics teams at exporters and importers reliant on West Asia transshipment must secure vessel space and reroute bookings now — consignments not rebooked before October 25, 2026 will not be eligible for movement under the temporary cabotage relaxation.
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Source
View on Economic Times