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Direct Services Launched by Major Ocean Shipping Companies from India to USA
2 Aug 24
5 min read
The ocean shipping industry is undergoing a transformation with several new direct services being launched by leading players such as ONE Line, CMA CGM, MSC, and Maersk Line. These services aim to streamline shipping operations, reduce transit times, and provide reliable connections between key Indian ports and major destinations in the USA.
ONE Line (Ocean Network Express)
ONE Line has introduced the East Coast Loop 6 (EC6), a direct service connecting Nhava Sheva, Mundra, and Chennai to the ports of Savannah, Charleston, and New York. Launched in March 2024, this weekly service promises enhanced schedule reliability and competitive transit times, reducing delays and improving service efficiency.
CMA CGM
CMA CGM has launched two notable direct services:
1. Indus Express (INEX): The ability to track shipments at every stage, from port to destination, is no longer optional—it's expected.
2. Indian Ocean-US East Coast (IOUSEC): Operating bi-weekly, this service, launched in April 2024, connects Chennai, Cochin, and Tuticorin to New York and Norfolk, catering to a variety of cargo types including perishable and high-value goods.
MSC (Mediterranean Shipping Company)
MSC's India-America Direct (IAD) service, launched in January 2024, provides bi-weekly direct connections from Chennai, Nhava Sheva, and Mundra to Long Beach and Houston. Additionally, the Indus Service, operating weekly and launched in March 2024, links Nhava Sheva and Mundra to Newark, Savannah, and Houston, focusing on reducing transit times and offering stable, predictable shipping schedules.
Maersk Line
Maersk Line's Trans-Pacific Express (TPX) offers weekly direct services from Nhava Sheva and Mundra to Los Angeles and New York. Launched in February 2024, this service aims for high reliability and reduced transit times. Another key service, the Indian Subcontinent-East Coast (ISEC), connects Chennai, Nhava Sheva, and Mundra to Charleston and Savannah weekly. Launched in April 2024, it enhances schedule reliability and optimizes transit times.
Impact on Freight Rates and Space
The introduction of these direct services has led to competitive pricing and stabilized rates by reducing dependence on transshipment hubs. However, high demand for these routes often leads to limited space availability, particularly during peak seasons. Shippers are encouraged to:
1. Advance Booking: Plan and book shipments well in advance to secure space during peak seasons.
2. Flexible Scheduling: Maintain flexibility in shipping dates to take advantage of available slots on alternative routes or carriers.
3. Collaboration with Freight Forwarders: Work closely with experienced freight forwarders who have established relationships with shipping lines and can negotiate better space allocations.
4. Diversification of Carriers: Avoid reliance on a single carrier by spreading shipments across multiple shipping lines to increase the likelihood of securing space.
5. Regular Communication: Maintain regular communication with carriers and logistics partners to stay informed about space availability and potential disruptions.
Conclusion
The new direct services by these major ocean shipping companies mark a significant improvement in India-USA trade logistics, promising faster transit times, reliable schedules, and competitive rates, albeit with some ongoing space challenges.
New Direct Services from India to US East Coast launched by ONE, CMA CGM, Maersk and MSC Line.
The full impact of the new services is not being felt as shortage of equipment still persists.
Increase in demand is another reason for high freight rates between India to US.
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