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India unveils ambitious plan to become a leading global shipbuilder

India is aiming to transform itself into one of the world's leading shipbuilding nations with an ambitious long-term strategy that combines state funding, industrial policy, and international partnerships. During a webinar hosted by maritime consultancy Drewry, executives outlined how the Indian government's Maritime Amrit Kaal Vision 2047 aims to elevate India from its current position as the world's 11th-largest shipbuilder into the top 10 by 2030, and the top five by 2047. The strategy centres on expanding domestic shipbuilding capacity while developing a larger Indian-owned fleet, supported by new financing mechanisms, shipyard investment, and demand from state-owned companies. Shailesh Garg, director and GM of Drewry India, said the strategy represented a departure from previous maritime policies and represented "a much more holistic long-term plan". "It covers just not the physical infrastructure, but also other themes like green and safe maritime training and research technology, smart ports, and development of Indian tonnage." India currently accounts for less than 0.5% of global shipbuilding output, with China dominating the sector, followed by South Korea and Japan. To close the gap, the government has identified multiple coastal shipbuilding clusters and introduced financial incentives including shipbuilding assistance, a maritime development fund, interest subsidies, and ship recycling credit notes. The country is also seeking to stimulate demand, with Shipping Corporation of India already issuing tenders for new methanol dual-fuel-ready containerships and tankers. According to Mr Garg, execution will determine whether the targets are achievable. "We have a small window right now where people are looking for alternatives to what exists, and if we can really catch this wave that would be the great. So I think next three to four years are critical," he explained. This "wave" is exacerbated by geopolitical tensions and shifting global supply chains that create favourable conditions for India's ambitions, he added. "Whether you look at it from the policy perspective, the execution perspective, the foreign shipowners' perspective, or even from the shipbuilders' perspective, they want to expand beyond their country to invest," said Jayendu Krishna, head of maritime advisors at Drewry. "From all these perspectives, we see that we are heading in the right direction... I don't see a reason why Indian government, if it continues to push ahead the momentum it has gained already, why it will not be able to achieve." However, India's shipyards have traditionally concentrated on naval and smaller commercial vessels, leaving significant 'capability gaps' in large and specialised tonnage. Collaboration with established Japanese and South Korean shipbuilders is therefore expected to play a central role in developing the necessary design expertise, production processes, and advanced vessel technology. Mr Krishna said: "Given that many of the Japanese and Korean yards have signed preliminary agreements with the Indian yards, there will be at least, to begin with, some technology sharing; whether technology transfer happens or not, I'm not sure." He added that the government's longstanding objective was to secure technology transfer to facilitate the industry's growth, particularly in specialised vessels, such as large LNG and LPG carriers. Mr Garg explained that international collaboration would also help give shipowners greater confidence in India's emerging commercial shipbuilding capabilities. "I think we have to speed up and be there competing with some of the leading yards. These collocations are very important because that will push us toward building some of the not-so-simple vessels."

Brazilian forwarders unfazed as Trump unleashes new tariff

Brazilian forwarders appear unfazed by the US 25% tariff that came into effect today, pointing to the broad exemption list and lead time to ready themselves as substantial buffers to any financial pain. President Trump made clear his intention to slap a huge tariff rate on the South American neighbour, but with his wider tariff policy having been hobbled by the Supreme Court, the administration sought to ensure this one stuck. One forwarder told The Loadstar this had required the US government work through a year-long investigation that gave industry sufficient time to prepare itself, with many pleased with the exemption list served up with the tariff. AGL Cargo's Jackson Campos told The Loadstar: "The tariff is broad, but the exemption list is significant, so the impact will vary considerably by commodity. Furniture, machinery, footwear, timber, sugar, and ethanol are among the more exposed flows. "Coffee, beef, aircraft, and some energy and industrial products are exempt. We've responded at shipment level," Mr Campos added, noting that AGL would be checking classification, origin, and exemption status with customs brokers to ensure compliance. The company would also be also tracking the US customs-entry date and running landed-cost scenarios before bookings were confirmed. Forwarders The Loadstar spoke to said there was little immediate concern of a physical interruption to cargo flows, but there were some fears over customs compliance. Mr Campos said: "My main concern is the secondary effect on logistics. We may see an initial pause in US-bound bookings, followed by cancellations or changes in cargo mix in the most affected sectors. "That could alter container availability and carrier capacity planning, even for exporters whose products are exempt. Overall, I do not expect an immediate system-wide breakdown." Forwarders also highlighted a need over the coming weeks to keep ahead on customs compliance, shipment visibility, and flexibility, as Brazilian exporters and US importers adjust to the new cost base. "We are also reviewing Incoterms and duty responsibility, while keeping ocean allocations flexible so customers can defer shipments, adjust volumes or redirect cargo to other markets where commercially viable," added Mr Campos. On a broader level, the tariffs against Brazil could be part of a push by the US administration to renew its push towards their use as a bargaining tool. Washington-based Atlantic Council, certainly thinks so, the think tank's Valentina Sader telling France 24 the tariff could be intended "as an example to send a broader message about its priorities and negotiating approach". Certainly there is some logic at play here, the tariffs coming into effect the same week that President Trump has escalated his trade dispute with Canada, with additional 50% tariffs on hundreds of its products. Baker Tilly's director of global trade advisory services, Pete Mento, believes the Canada tariffs have a decent chance of surviving legal scrutiny by using what is known as a "Section 338", designed to address foreign discrimination against American trade. "The administration's justification is that Canada has treated US commerce less favourably than competing countries in three areas - alcoholic beverages, motor vehicles, and dairy," said Mr Mento. "The alcohol case is the strongest. Canadian provinces allegedly removed US products from their systems while continuing to sell competing foreign products. The motor vehicle case is also fairly direct, because Canada imposed measures specifically against US vehicles." However, he noted, the dairy issue was "more complicated, because the claim depends on comparing quota treatment under different trade agreements". But he said "a court is unlikely to reject Section 338 as a valid tariff authority altogether".

Southeast Asia demand keeps Cathay Cargo's volumes elavated

Cathay Cargo recorded a strong increase in airfreight volumes last month supported by demand from the Chinese mainland into southeast Asia and uptake of its Priority service. Airfreight volumes totalled approximately 145,000 tonnes during June, a rise of 9% year on year. Meanwhile, capacity increased by 1%. In the first six months of 2026, the total tonnage increased by 9% compared with the same period for 2025. Cathay chief customer and commercial officer Lavinia Lau said: "Cargo tonnage recorded a solid year-on-year increase in June. During the month, we saw strong cargo flows from the Chinese Mainland into Southeast Asia alongside steady demand within Southeast Asia. "Shipments into the Chinese Mainland and Hong Kong remained resilient, while our specialist solutions continued to perform well, with semiconductor and pharmaceutical shipments supporting growth in Cathay Expert and Cathay Pharma respectively. "Cathay Priority also saw strong demand into Hong Kong, Southeast Asia and the Americas, reflecting shippers' need for time-definite solutions to replenish inventory." Lau pointed to jet fuel prices as an ongoing area of concern, as well as the potential e-commerce impact of the recently implemented EU customs duty on low-value parcels imported from outside the EU. Early July figures from data provider and consultant Rotate showed that freighter capacity between China and Hong Kong and the European Union appears to have declined following the start of the new duty. "Looking ahead, we anticipate continued healthy cargo flows across our network," added Lau. "At the same time, we will monitor the potential impact on e-commerce flows following the introduction of new customs duties on low-value imports into Europe." The carrier recently cancelled its plans to restart freighter operations to the Middle East region following renewed fighting between the US and Iran.