<p class="MsoNormal"><span style="font-size:14.0pt;line-height:107%;font-family:
"Times New Roman",serif">The Indian government is set to launch dedicated
vessel services on West Asia trade routes as a direct intervention to counter
freight costs that have surged by 60–80% since the start of the Hormuz crisis
on February 28. This initiative aims to provide direct, cost-efficient maritime
connectivity between India and Gulf Cooperation Council (GCC) markets, reducing
the dependency on expensive transshipment hubs. By offering a government-backed
shipping option, the service will act as a price anchor to stabilize the
India-Gulf corridor and protect exporters of engineering goods, textiles, and
agricultural products from being priced out of their primary regional markets.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;line-height:107%;font-family:
"Times New Roman",serif"> The move comes at a critical time for exporters of
low-margin goods, such as spices and processed foods, who have seen container
rates more than double due to the accumulation of Emergency Conflict Surcharges
and War Risk Premiums. Without this intervention, many shipments have become
commercially unviable despite physical logistics remaining possible. The new
service ensures that the "Made in India" brand remains competitive in
the Middle East by preventing commercial carriers from unilaterally setting rates
that could effectively shut down regional trade. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;line-height:107%;font-family:
"Times New Roman",serif"> This shipping plan is a central component of an
emergency logistics framework India has developed since the crisis began,
joining the recently approved Bharat Maritime Insurance Pool and streamlined
customs procedures under CBIC Circular 21/2026. The relief framework has also
been expanded to include 12 countries, including Egypt and Jordan, to ensure
broader regional coverage. These measures collectively aim to secure India’s
energy and trade bridges against the continued volatility of the Strait of Hormuz,
providing much-needed predictability for stranded or rerouted cargo. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;line-height:107%;font-family:
"Times New Roman",serif">The service will be operated through a collaborative
model where the government provides strategic direction while commercial
operators, such as the Shipping Corporation of India and CONCOR’s Bharat
Container Shipping Line, provide the vessel capacity. By leveraging existing
infrastructure and Indian-flagged vessels—including those from the SCI-oil PSU
joint venture—the government can implement the service rapidly without the long
lead times of new ship procurement. This strategic deployment underscores India's
commitment to maintaining robust supply chains and protecting its export
economy during periods of geopolitical instability. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:14.0pt;line-height:107%;font-family:
"Times New Roman",serif"> </span></p>