Container lines are pouring more capacity into India-Africa trades that industry sources say is expanding at a strong pace as global supply chain patterns realign.
Two new weekly departures from western India to East Africa are set to launch this month, adding significant loading space for Indian exporters targeting the buoyant sourcing market.
These services will be operated by a cohort of Asian liners, led by Pacific International Lines (PIL), HMM, Cosco, Interasia Lines (IAL), OOCL and ONE, with one service connecting JNPA (Nhava Sheva) and Mundra in India to Mombasa, Kenya, and the other to Dar es Salam, Tanzania, in East Africa, according to trade sources.
Sources also said the dual-string network, named GIA1 and GIA2, is to use vessels in the range of 2,300 to 2,800 teu capacity, with each service deploying eight vessels.
And the first departures at the PSA terminal (BMCT) in JNPA (Nhava Sheva) are scheduled for 23 September and 27 September, forward vessel schedules show.
“The new service connects major production hubs and consumer markets across India and East Africa, responding to growing trade demand between the two regions,” Singapore-based PIL said.
William Ho, PIL’s GM for long-haul services, said: “PIL has been serving the Asia–Africa trade for decades, building deep market expertise, strong partnerships and a trusted network across the continent.
“Together with our existing services, IMX [Imara Express] provides customers with a more comprehensive network package, expanding market access with greater flexibility, and more options to optimise their supply chain needs in an increasingly dynamic trading environment,” Mr Ho added.
South Korean liner HMM said the new network ties in with its ‘hub-and-spoke’ operating strategy.
“By adding the East Africa (GIA) route to its existing West Africa (MA2) service, HMM expands its coverage across the African continent.
“Kenya and Tanzania, the newly added destinations, serve as gateways to East Africa, where port infrastructure and inland logistics developments are ongoing,” HMM noted.
“The service is expected to improve transport convenience for shippers.”
According to local industry sources, India-East Africa trade growth is being driven, in large part, by automotives, engineering goods and various out-of-gauge (OOG) cargo.
“The capacity demand is strong,” one carrier executive told Лодстар.
With growing India-Africa volumes, the freight yields on the tradelane have been quite attractive for capacity participants, according to sources.
Average spot rates ex-JNPA now stand at $2,100 per 20ft and $2,400 per 40ft for Mombasa/Dar es Salaam, market participants said.
However, mainliners traditionally active on India-Africa trades – particularly CMA CGM – are closely evaluating how the influx of capacity from Asian regional carriers could impact their cargo support, as newcomers typically have the appetite to undercut market rates to fill vessels.
CMA CGM operates its Swahili Express (SWAX) service that connects India, the Middle East and East Africa.
Meanwhile, authorities in Kenya recently tightened cargo manifest rules with a new advance cargo declaration (ACD) requirement as part of efforts to rein-in misdeclaration of goods and other trade illegalities.
This updated ACD regime took effect 1 August and has already sparked compliance issues for some Indian shippers.
For example, a northern India exporting firm alleged that its consignment of three 20ft boxes, shipped from Mundra to Mombasa, had been stuck at the destination for two weeks due to incorrect/flawed manifest filing by the carrier.
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