MoPSW approves six-month cabotage relief to ease shipping crunch caused by West Asia crisis

The Ministry of Ports, Shipping and Waterways (MoPSW) has granted a six-month extension to foreign-flagged vessels for transporting domestic cargo along India’s coastline, thereby postponing by six months the implementation of its decision to roll back the cabotage waiver. This strategic move, effective until October 25, 2026, aims to mitigate a potential shortage of ships and containers caused by the ongoing West Asia crisis. By relaxing cabotage rules—which typically reserve coastal trade for Indian-flagged vessels—the government seeks to ensure the seamless movement of essential commodities and export-import (EXIM) cargo. The Union Shipping Minister, Mr Sarbananda Sonowal, noted that the extension is a temporary and situation-driven measure necessitated by soaring freight costs and shipping disruptions in the Middle East. Industry stakeholders, including major port operators, had lobbied for this relief to stabilise supply chains. The priority remains safeguarding trade continuity and preventing further inflationary pressure on the economy, said a report.

The rollback was originally scheduled to take effect after a transition period beginning April 21. This would have withdrawn three general orders issued in 2018 that allowed foreign-flagged vessels to carry specific categories of cargo along India’s coast without a licence. 

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