MUMBAI – Global shipping leader CMA CGM is significantly scaling its presence across India, deploying additional vessels on key trade routes while preparing to enter the nation's coastal shipping market.
The carrier has doubled weekly capacity connecting India to Europe and the Mediterranean since January 2024, adding four 15,000-TEU vessels to its IMED service (India Middle East Europe). This reinforces direct port calls at Nhava Sheva (Mumbai), Mundra, and Chennai.
India Strategy Breakdown:
Deepened Global Connectivity:
- 40% capacity increase on India-Europe corridor
- New Chennai-Fos Express (CFX) service linking South India to China/Southeast Asia
- Faster transit times: Nhava Sheva to Fos-sur-Mer in 17 days
Coastal Shipping Foray:
CMA CGM India confirmed plans to launch domestic cargo movement between Indian ports by late 2024. This positions the French firm to capture growing cabotage demand driven by:
- Government's Sagarmala port modernization push
- Rising factory relocation to interior states
- 12% annual growth in coastal container volumes (Indian Ports Association data)
Infrastructure Commitment:
The group's terminals arm (CMA Terminals) is exploring investments in east coast container facilities to support export manufacturing clusters in Tamil Nadu and Andhra Pradesh.
Why This Matters for Indian Businesses:
"These moves signal confidence in India's long-term export growth," explains Ramesh S. Menon, a Mumbai-based logistics advisor. "Doubling mainline capacity reduces over-dependence on transshipment hubs like Colombo. For automotive and textile exporters, direct European sailings mean fewer delays."
The coastal venture could reshape domestic logistics. CMA CGM's potential roll-on/roll-off (RoRo) services may challenge traditional trucking for auto parts and machinery transport between Gujarat and Tamil Nadu coastal hubs.
What Shippers Should Watch:
- Equipment Availability: New vessels should ease container shortages at Mundra and Krishnapatnam during peak seasons
- Export Pricing: Increased capacity may stabilize spot rates to Mediterranean destinations
- Coastal Rate Structures: Pricing models for domestic legs expected by Q3 2024
CMA CGM India's Managing Director noted: "Our expanded footprint aligns with India's target to reach 7,000 MT port cargo volumes by 2030. We're building agile solutions for both international traders and domestic industries."
Bottom Line: With 17% of India's containerized cargo already moving on CMA CGM ships (Alphaliner 2023), this expansion strengthens India's position in global supply chains while pioneering new coastal options. Companies shipping between India and Europe/North Africa should reassess routing options starting Q2 2024.
