In a historic move for global shipping and India’s maritime ambitions, CMA CGM is set to become the first major international container carrier to reflag its vessels under the Indian flag. This marks a significant milestone for India’s efforts to position itself as a competitive hub for global shipping operations.
Major Steps in CMA CGM’s Reflagging Initiative
The first vessel, CMA CGM Vitoria, will officially be reflagged on April 28, 2025, in Mumbai. A second vessel, the CMA CGM Manaus, will follow shortly. Both vessels, built in 2008 and 2009, have a carrying capacity of 2,592 TEUs each.
To manage these newly Indian-flagged assets, CMA CGM has established a new entity — CMA CGM Shipping Assets India IFSC Pvt Ltd — based in Gujarat International Finance Tec-City (GIFT City).
Regulatory and Strategic Significance
This reflagging initiative is backed by the Directorate General of Shipping (India), highlighting a proactive approach from Indian authorities to attract more vessel registrations by easing operational and compliance frameworks.
Ships registered under the Indian flag must:
- Comply with Indian maritime laws.
- Employ only Indian nationals as crew members.
- Be classified by the Indian Register of Shipping.
This aligns with India’s broader strategy to expand its merchant fleet and decrease reliance on foreign carriers for export-import (EXIM) activities.
Broader Industry Context
Historically, about 75% of the world’s shipping tonnage operates under so-called “flags of convenience” — countries offering tax breaks, regulatory flexibility, and lower operating costs. With regulatory reforms, India aims to become an attractive alternative for global carriers.
Why Reflagging Matters: Key Benefits
Reflagging offers many advantages, such as tax relief, regulatory flexibility, lower operating costs, better market access, and increased competitiveness. Governments may also provide incentives and financial support to boost local shipping industries through these initiatives.
Key Data Summary
| Item | Details |
|---|---|
| First Vessel to be Reflagged | CMA CGM Vitoria |
| Reflagging Date | April 28, 2025 |
| Second Vessel | CMA CGM Manaus |
| Vessel Capacity | 2,592 TEUs each |
| Vessel Build Years | 2008 and 2009 |
| New Company Formed | CMA CGM Shipping Assets India IFSC Pvt Ltd |
| Company Location | GIFT City, Gujarat |
| Regulatory Authority | Directorate General of Shipping, India |
| Key Regulatory Requirements | Indian crew only, classification under Indian Register of Shipping |
| Global Context | 75% of world shipping under favorable “flags of convenience” |
| Strategic Objective | Increase India’s maritime fleet and global shipping presence |
Strategic Benefits of Reflagging
| Benefit | Explanation |
|---|---|
| Tax Advantages | Lower tax burdens compared to other jurisdictions |
| Regulatory Flexibility | Simpler compliance and lower administrative overhead |
| Lower Operating Costs | Reduced registration, inspection, and crew costs |
| Access to New Markets | Improved trade route access |
| Operational Freedom | Easier adaptation to changing market conditions |
| Crewing Benefits | More flexible and diverse crew hiring policies |
| Increased Competitiveness | Lower shipping rates through cost efficiency |
| Enhanced Regulatory Compliance | Better alignment with international standards |
| Better Financing Access | Favorable financing terms from banks |
| Investment Incentives | Possible subsidies and financial support |
| Strategic Economic Alliances | Stronger trade partnerships via national registry |
CMA CGM’s pioneering move could pave the way for more global shipping companies to reflag in India, unlocking significant growth opportunities for the Indian maritime sector.
Glottis Limited 
Leave a comment