Global Shipping Giant Maersk Reflags Two Of Its Container Ships In India

Shipping giant Maersk has registered two of its container ships under the Indian flag, following a similar move by competitor CMA CGM, industry sources said.

The Danish company has established a new unit in Gujarat International Finance Tec-City (GIFT City) named Maersk Bharat IFSC Private Limited to own the reflagged vessels.

The ships are the 1,810 TEU ‘Maersk Vilnius’, reflagged on 13 October, and the 1,740 TEU ‘Maersk Vigo’, reflagged on 21 October. Both vessels were built in 2010 and were previously registered in Singapore.

Shipping analysts explained that vessels operate under the flag of the country where they are registered, and Maersk is expected to make an official announcement regarding the conversions during India Maritime Week, starting 27 October in Mumbai. Senior executives from the company are expected to attend the event, according to officials from the Directorate General of Shipping.

The move strengthens Maersk’s position in one of the world’s fastest-growing shipping markets, supported by recent regulatory reforms, better port infrastructure, and GIFT City’s rise as a global hub for shipping and finance.

French shipping company, CMA CGM, has reflagged three container ships in India since April and plans a fourth by the end of October, becoming the first major global carrier to register ships under the Indian flag.

Earlier this year, Maersk held the naming ceremony of its dual-fuel methanol container vessel, ‘Albert Maersk,’ at Jawaharlal Nehru Port near Mumbai, marking the first such event by a global shipping line in India.

Around the same time, the company signed a strategic partnership with Cochin Shipyard Ltd to collaborate on ship repair, maintenance, and construction.

Initially, the partnership will focus on afloat repairs for vessels up to 7,000 TEUs and dry docking for ships up to 4,000 TEUs. Per sources, Maersk has already chosen the first ship for repairs, although limited capacity is a challenge.

Meanwhile, the world’s largest container carrier, Mediterranean Shipping Company (MSC), is reportedly considering registering ships under the Indian flag to adapt to potential regulatory changes and a possible reversal of the 2018 policy allowing foreign-flagged vessels to carry domestic containers without a licence.

References: thehindubusinessline, indiaseatradenews

Source: Maritime Shipping News