Why are global shipping firms reflagging their India-bound vessels?

India-bound global shipping giants are increasingly re-registering their vessels under the Indian flag, a trend that resurged in April, and has been continuing strong ever since.

This comes after a number of shipping legislations in the country were simplified in September to transform India’s 11,098-kilometre coastline, forming the Coastal Shipping Act 2025. 

“Reflagging by international majors gives a significant boost to the Indian Registry and reflects confidence in our maritime administration,” a Directorate General of Shipping (DG Shipping) official said, as per a Maritime Gateway report.

Notably, when such foreign ships are reflagged, their details are added to India's registry, enabling them to carry domestic cargo. 

When doing so, it is possible that the Coastal Shipping Act aids them, because the purpose of the Act, by definition, is to regulate and boost shipping within India's extensive 11,098-kilometre coastline. However, the Coastal Shipping Act 2025 has not explicitly declared any benefits for foreign ships reflagging to the Indian flag.

Danish shipping giant Maersk is the latest to join the trend with two of its container ships—the 'Maersk Vilnius' and the 'Maersk Vigo'—recently reflagged ahead of a journey from Hong Kong to India.

The A.P. Moller-owned shipping company also established Maersk Bharat IFC Pvt Ltd to facilitate the reflagging process.

Swiss shipping firm MSC (Mediterranean Shipping Company) is also reportedly preparing to reflag its vessels under the Indian flag, and is likely to announce this during the India Maritime Week 2025 in Mumbai, the report added.

Maritime