Foreign shipping firms say no to Indian agents

Large foreign container shipping companies are sidestepping local Indian shipping agents and setting up direct operations in India.

Till now these shipping companies, which handle 85 per cent of the sea trade, were depending on local shipping agents to manage their distribution network and other logistics.

Now, the shipping companies say that a direct office will give them better control over operations.

German shipping line Hapag Lloyd, South Korean company Hanjin Shipping and United Arab Shipping Company (UASC) are the latest shipping majors to set up offices and a distribution network in India.

These three shipping majors will join P&O Nedlloyd, Maersk-Sealand, APL-NOL, Safmarine, Evergreen, Lloyd Triestino, Mitsui OSK, Yang Ming Lines, CMA CGM, PIL, Hyundai Merchant, CSAV-Norasia, Zim Israeli Navigation, Wan Hai Lines, OOCL, CP Ships and Cosco, which have already done away with the involvement of shipping agents in order to set up their offices.

Sources say Hanjin Shipping and Hapag Lloyd would set up operations in India while UASC would float a joint venture for future operations.

C S Manohar, ex-president, Mumbai and Nhava-Sheva Ship-Agents' Association (MANSA), said, "As the overseas container shipping companies are expanding activities and increasing investments in India, they want direct control over the operations, rather than appointing third party agents".

With the latest development, shipping agents are now focusing on other areas like port-related infrastructure. Many agents are contemplating building CFSs and entering into slot arrangements with large shipping lines.