Global carriers, led by Hapag-Lloyd, invest billions in India's maritime sector as US West Coast ports face declines from tariff frontloading.
Global carriers are committing billions to India's maritime sector, with Hapag-Lloyd being the latest to announce a major investment. This comes even as US West Coast ports report double-digit declines from the 2025 tariff frontloading hangover, according to London's Container Management.
The divergence between two of the world's most closely watched container markets has rarely been sharper. US West Coast ports are experiencing steep volume drops as the effects of last year's tariff frontloading unwind, while India is attracting unprecedented capital.
Throughput in India is rising by more than 12 percent annually, with port capacity being expanded to accommodate a doubling of volumes within the next 15 years.
On March 19, Hapag-Lloyd signed a letter of intent with India's Ministry of Ports, Shipping and Waterways to reflag up to four containerships, develop ship recycling for up to 100 end-of-life vessels, and invest in infrastructure at the planned Vadhavan mega-port.
Union Minister Sarbananda Sonowal described the carrier's existing investment of more than INR 60 billion (US$ 700 million) and broader commitment of $2.3 billion as a deep strategic alignment with India's maritime ambitions.
Hapag-Lloyd chief executive Rolf Habben Jansen stated that container volumes in India, currently around 20-25 million TEU, are expected to grow significantly.
The carrier's Strategy 2030 targets an annual throughput of 3 million TEU in the country, up from 1.9 million TEU today. Hapag-Lloyd operates 17 offices with more than 2,800 employees across India and holds a 40 percent stake in JM Baxi Ports & Logistics, which has an annual capacity of 3.2 million TEU.
