Coastal shipping is quietly transforming how goods move across India, and in 2026, the case for shifting cargo from road to sea has never been stronger. With the Coastal Shipping Act, 2025 now in effect, the Sagarmala programme accelerating port development, and fuel costs squeezing road margins, Indian shippers are asking a question worth answering properly: should we be moving more cargo by coast? This guide covers everything you need to know: how coastal shipping works, which ports and corridors matter, how costs stack up against road and rail, which cargo types are a fit, and how to get started.
Key Takeaways
Coastal shipping moves domestic cargo between Indian ports using vessels under Indian registry, with no international customs and no cabotage exemptions needed for Indian operators.
The Coastal Shipping Act, 2025 replaced the cabotage provisions of the Merchant Shipping Act, 1958, simplifying licensing and opening new vessel categories for coastal trade.
On long-haul routes (1,000+ km), coastal shipping can be 30–40% cheaper per tonne-km than road transport, though transit times are longer.
Sagarmala and the Coastal Cargo Promotion Scheme provide port-side infrastructure and incentive frameworks that continue to reduce the cost gap with road.
Coastal shipping suits bulk commodities, containerized cargo, steel, cement, coal, fertilizers, and Ro-Ro traffic—especially on the west-to-south and east-coast corridors.
Epsilon Logistics integrates coastal sea freight with inland rail and road to deliver multimodal solutions that cut costs and carbon across the full supply chain.
What Is Coastal Shipping? A Simple Definition
Coastal shipping, also called cabotage in maritime law, is the transport of goods and passengers between two ports within the same country, using vessels registered under that country's flag. In India's context, you could define coastal shipping simply as: domestic cargo movement by sea, within Indian territorial waters, between Indian ports.
Coastal shipping is different from international or EXIM shipping in one critical point. Coastal vessels carry domestic cargo that has already cleared customs or cargo that never needed to clear it. The cargo never formally leaves Indian territory, and thus, you do not have the documentation burden associated with international freight.
Coastal shipping is part of a concept called short sea shipping, which means using ships to travel shorter distances instead of crossing entire oceans. The core objective behind it is to save on costs, keep roads less crowded, reduce carbon emissions, and enable logistics that help improve environmental conditions nationally and globally.
Why Coastal Shipping in India Matters More in 2026
India’s freight sector has a structural problem, which has existed before 2026 and years beyond. Road transport dominates logistics to a degree that creates inefficient costs, road congestion, and carbon inefficiency. Road transport carries approximately 60–65% of India's total freight tonne-kilometres (Ministry of Ports, Shipping and Waterways data), while coastal shipping's modal share remains in the low single digits.
But several factors in 2026 are making an inflection point:
Fuel and toll costs on road have risen sharply. Long-haul trucking margins are tighter, and shippers absorbing the costs are now looking for better alternatives.
The Coastal Shipping Act, 2025 changed the legislation to a large extent. Earlier, India used the Merchant Shipping Act, 1958, to regulate coastal shipping. But the new Coastal Shipping Act, 2025 turned it around - reducing unnecessary licensing requirements, making it easier for companies to start coastal operations.
Maritime Amrit Kaal Vision 2047 is the Indian Government's long-term plan to strengthen the country's maritime sector. One of its major goals is to triple the share of coastal shipping by 2030 - which is why the government is investing in new ports, better terminals, improved coastal infrastructure, and port connectivity.
ESG and Scope 3 reporting obligations are pushing large shippers to look for lower-emission transport modes. Many large companies now publish ESG reports that show their responsible method of operations. Since ships produce much less carbon dioxide per tonne of cargo than trucks, companies increasingly choose coastal shipping to reduce their transport emissions.
With Sagarmala port modernization, the government has upgraded port infrastructure by adding better berths, increasing cargo-handling capacity, and improving operational efficiency. As a result, ships spend less time waiting at ports and complete their journeys faster. These improvements have made coastal shipping more reliable and have encouraged more businesses to use it instead of relying only on road transport.
The result: coastal shipping in India is no longer a niche workaround for bulk commodity shippers. If you are a company moving high-volume cargo over distances, coastal shipping can be your mainstream consideration.
How Coastal Shipping Works: The End-to-End Flow
Understanding coastal transport in India means following a shipment from origin to delivery. Here is the typical end-to-end process:
Cargo Preparation and Documentation: Unlike international freight, coastal cargo does not require export or import documentation. Shippers file a coastal manifest with the Directorate General of Shipping (DGS) through the National Logistics Portal (NLP) or the vessel operator's platform. For containerized cargo, a standard bill of lading is issued; for bulk, a mate's receipt.
Inland Movement to Load Port: Cargo moves by road or rail to the origin port. This first-mile leg is critical to total landed cost. Epsilon's containerised transportation and rail freight services are designed to integrate directly with coastal port loading schedules, minimizing dwell time.
Port Handling and Loading: At the load port, the container or bulk cargo is received into the terminal, inspected, and loaded onto a coastal vessel—typically a smaller feeder vessel, a multipurpose coastal carrier, or a Ro-Ro vessel depending on cargo type.
Sea Transit: The vessel departs under the Indian flag, operating under coastal trade regulations governed by the DGS and the Ministry of Ports, Shipping and Waterways (MoPSW). Transit times vary widely—from under 24 hours on short corridors (e.g., Kandla to Mundra) to 5–7 days for longer legs (e.g., Kandla to Kolkata).
Discharge Port Handling: At the destination port, cargo is unloaded, subject to port receiving procedures, and transferred to a yard or staging area.
Last-Mile Delivery: From the discharge port, cargo moves by road or rail to the final consignee. Integrating this leg into a single logistics plan—rather than treating it as a separate arrangement—significantly improves total transit time and cost control.
Ready to map out a coastal route for your cargo? Talk to the Epsilon team for a no-obligation route analysis.
India's Coastal Shipping Infrastructure: Ports and Corridors
India has a coastline of approximately 7,516 kilometres, served by 13 major ports and over 200 non-major (minor and intermediate) ports. Not all are equally relevant to coastal trade. Infrastructure quality, vessel size limits, cargo-handling capability, and hinterland connectivity determine which ports actually generate coastal shipping volume.
The West Coast
The west coast is the workhorse of Indian coastal trade, dominated by:
Deendayal Port (Kandla/Kutch): India's largest port by cargo volume, with strong container and bulk handling capacity. A primary origin for coastal shipments moving southward toward Cochin and Tuticorin.
Mundra Port (under Adani Ports): The country's largest private port, with advanced container terminal infrastructure and fast vessel turnaround. Strong multimodal integration with rail connectivity to the hinterland.
Jawaharlal Nehru Port (JNPT), Nhava Sheva: Predominantly an EXIM container hub, but handles coastal containers through dedicated berths.
Mormugao, Goa: Strong coal and bulk cargo handling, serving steel and power sector shippers.
New Mangalore Port: Key gateway for petroleum products, edible oils, and containers along the southwest coast.
Cochin (Kochi) Port: The southwest's most significant deep-water port, serving as a transshipment hub and a major coastal discharge point for cargo destined for Kerala and Tamil Nadu.
The East Coast
The east coast handles substantial bulk commodity movement and is increasingly integrated with industrial corridors:
Visakhapatnam (Vizag) Port: One of India's largest bulk-handling ports, significant for coal, iron ore, and fertilizer coastal movements.
Kamarajar Port (Ennore), Tamil Nadu: Specialist coal and liquid cargo port, feeding coastal energy supply chains.
Chennai Port: A major container and general cargo gateway on the east coast, with strong last-mile road connectivity.
V.O. Chidambaranar Port (Tuticorin/Thoothukudi): Critical southern port for containers and bulk, serving as an east-coast discharge point for cargo arriving from the west.
Paradip Port, Odisha: High-volume bulk port, dominant in coal and fertilizer coastal trade.
Syama Prasad Mookerjee Port (Kolkata/Haldia): The eastern gateway, important for Bangladesh-adjacent trade and northeast supply chains.
The Corridors That Matter
Not every port pair creates a viable coastal shipping lane. Volume, vessel frequency, and port infrastructure converge on a handful of high-priority corridors in 2026:
Corridor | Key Cargo Types | Approximate Sea Distance |
Kandla / Mundra → Cochin | Containers, FMCG, chemicals | ~1,200 nautical miles |
Kandla / Mundra → Tuticorin | Containers, auto components | ~1,350 nautical miles |
Mundra → Mumbai (JNPT) | Containers, bulk | ~340 nautical miles |
Vizag → Kolkata | Coal, steel, bulk | ~450 nautical miles |
Paradip → Tuticorin | Coal, fertilizers | ~1,250 nautical miles |
Chennai → Cochin | Containers, Ro-Ro, auto | ~310 nautical miles |
Epsilon maintains active operations and warehousing presence at Gandhidham, Pipavav, Mundra, Cochin, Mangalore, Tuticorin, Kolkata, and Vizag—covering all major coastal corridors. See our branch network for locations near your origin or destination.
The Coastal Shipping Act, 2025: What Changed
For decades, coastal trade in India operated under Part XIV of the Merchant Shipping Act, 1958—legislation primarily designed for ocean-going vessels, not the specific operational and regulatory needs of domestic coastal trade. The Coastal Shipping Act, 2025 changed that by creating a dedicated statutory framework.
Key changes relevant to shippers and logistics operators:
Simplified licensing: The new Act introduces a single coastal trade licence framework, replacing the patchwork of permissions that previously added time and compliance cost to operating coastal vessels.
Expanded vessel categories: More vessel types—including smaller inland-coastal vessels and certain foreign-flag vessels on specific permitted routes—can now participate in coastal trade under clearly defined conditions.
Cabotage relaxation provisions: The Act preserves India's cabotage protections for Indian-flag vessels on core routes, while creating structured pathways for limited foreign-vessel participation where Indian capacity is insufficient. This is a carefully balanced provision designed to grow the market without displacing Indian operators.
Digital-first compliance: The Act mandates electronic documentation and integration with the National Logistics Portal, reducing paperwork delays that historically added days to coastal shipment cycles.
Grievance and dispute resolution: A dedicated mechanism for coastal shipping disputes, reducing the dependence on general maritime courts for routine trade matters.
For shippers, the practical effect is reduced entry friction. Companies that previously found the regulatory complexity of coastal trade prohibitive now have a cleaner path to trialling coastal routes—particularly relevant for mid-sized manufacturers and FMCG companies considering their first coastal shipment. Epsilon's customs clearance and compliance team can help you navigate the new documentation requirements smoothly. Get in touch to learn more.
Sagarmala and the Coastal Cargo Promotion Scheme
Sagarmala is the Government of India's flagship port-led development programme, launched in 2015 and still driving the most significant port infrastructure investment India has seen in decades. Under Sagarmala, over ₹6 lakh crore in projects have been identified across port modernization, port connectivity enhancement, port-led industrialization, and coastal community development.
For coastal shipping specifically, Sagarmala's impact is visible in:
New and upgraded berths at major and non-major ports, increasing coastal vessel capacity
Road and rail connectivity projects linking ports to industrial hinterlands, reducing the first-mile and last-mile cost disadvantage
Ro-Ro terminal development at select ports enabling vehicle and machinery coastal movement
IWT (Inland Water Transport) integration, connecting river corridors to coastal routes in certain regions
The Coastal Cargo Promotion Scheme (CCPS), launched by the Ministry of Ports, Shipping and Waterways (MoPSW), encourages businesses to move cargo by sea instead of by road. Under this scheme, eligible companies receive financial support, such as lower port charges and freight incentives, on approved coastal shipping routes. The scheme mainly focuses on high-volume goods like coal, steel, cement, food grains, and fertilizers, as these products are more cost-effective to transport by sea.
Together, Sagarmala and the Coastal Cargo Promotion Scheme (CCPS) show the government's strong commitment to increasing the use of coastal shipping. For businesses, these initiatives help reduce shipping costs on eligible cargo movements. Epsilon's 3PL and 4PL logistics services are structured to help clients identify and capture these scheme benefits as part of a broader supply chain strategy.
Cost Comparison: Coastal Shipping vs Road vs Rail
Cost plays a major role in deciding whether to use coastal shipping. It can be more economical than road transport on long routes, but the overall cost depends on factors such as cargo type, distance, port charges, and first- and last-mile transportation.
Where the Coastal Advantage Comes From
Coastal shipping is usually the most cost-effective transport option for distances of 800 to 1,000 km or more. This is because a single ship can carry the same amount of cargo as hundreds of trucks, allowing fuel and operating costs to be spread across a much larger shipment.
Businesses can reduce costs even further through the Coastal Cargo Promotion Scheme (CCPS), which offers lower port charges for eligible cargo on approved routes. These savings are especially valuable for bulk commodities such as coal, fertilizers, steel coils, and cement, where large volumes make sea transport highly economical.
Where Coastal Shipping May Not Be the Best Choice
Coastal shipping does not offer the same cost or efficiency benefits in every situation. It may be less suitable in the following cases:
Short distances: For trips of less than 500 km, road and rail transport are often faster and can cost about the same once port handling and other charges are included.
Urgent or time-sensitive cargo: Ships operate on fixed sailing schedules and do not leave as frequently as trucks. If a business needs quick or just-in-time (JIT) deliveries, road transport is usually a better option.
Locations far from ports: If the pickup or delivery point is far from a port, transporting the cargo to and from the port can increase costs. This can reduce or even eliminate the savings from using coastal shipping.
Small shipments: Coastal shipping is most economical for large cargo volumes. Businesses with smaller shipments often find road transport more flexible and easier to arrange, as coastal less-than-container-load (LCL) services are still limited.
Total Landed Cost — What to Compare
Cost Component | Road | Rail | Coastal Shipping |
Freight rate (per tonne-km) | High | Medium | Low (at scale) |
Port/terminal handling charges | Nil | Low (ICD) | Medium |
First-mile / last-mile cost | Low | Medium | Medium to High |
Transit time | Fast | Medium | Slow to Medium |
Fuel surcharge exposure | High | Low | Low |
CO₂ per tonne-km | High | Low | Very Low |
Suitability for bulk, high volume | Medium | High | Very High |
Schedule flexibility | High | Medium | Low |
For most high-volume, long-haul movements, a multimodal approach combining coastalsea freight withrail or road for the first and last mile delivers the best total landed cost. Epsilon's route planning specifically optimises this combination—reducing road dependence while maintaining delivery reliability.
Want a cost comparison for your specific route? Get in touch with Epsilon and our team will model the total landed cost across modes.
Which Cargo Types Suit Coastal Shipping?
Coastal shipping is not universally applicable - but for the right cargo, it is a transformative power. The following categories are the strongest fits for coastal transport in India:
High-volume bulk commodities
Coal, coke, and lignite (energy sector, power plants)
Iron ore, steel coils, and structural steel (manufacturing)
Cement and clinker (construction)
Fertilizers and agri-chemicals (agriculture)
Edible oils and food grains
These categories dominate existing coastal cargo volumes. The volume-to-value ratio is low enough that the transit time trade-off is acceptable, and the per-unit freight savings are significant.
Containerized general cargo
FMCG and consumer goods on established corridors (e.g., Gujarat to Tamil Nadu)
Packaged chemicals and industrial goods
Automotive components (where Ro-Ro or container coastal options exist)
Epsilon's containerised transportation service is built for exactly these cargo types, with direct port access at Mundra, Kandla, Pipavav, and all major coastal terminals.
Ro-Ro cargo
Vehicles (passenger cars, commercial vehicles, tractors)
Heavy machinery and project equipment
Over-dimensional cargo (ODC) unsuitable for road
Petroleum and liquid bulk
Petroleum products (handled by specialist liquid bulk coastal tankers)
Chemicals and petrochemicals in liquid form
What coastal shipping is less suited for:
High-value, time-critical cargo (pharmaceuticals, electronics with JIT requirements)
Small parcel or LTL shipments
Cargo with very short inland-to-inland distances where a port call adds net time and cost
Who Should Use Coastal Shipping in India?
Coastal shipping is not the right choice for every business, but it offers clear cost and environmental benefits on the right routes. The real question is whether it makes sense for your business based on the type of cargo you move, the distance, and your logistics needs.
Coastal shipping is worth considering if your business meets most of the following conditions:
You move high volumes of cargo (FCL scale or bulk lots) regularly, not occasionally
Your origin and destination are within reasonable distance of coastal ports (ideally within 150–200 km)
Your route distance exceeds 800 km, where sea freight economics begin to outperform road clearly
Your cargo type falls into bulk, containerized general, or Ro-Ro categories
Your supply chain can absorb 2–5 additional transit days versus road delivery
Cost reduction or ESG compliance is a material business priority
An Illustrative Scenario (Not a Client Case)
Imagine a construction materials manufacturer in Gujarat that regularly ships cement to Tamil Nadu. Since the distance is over 1,200 km, road transport becomes expensive and can face driver shortages.
By moving the cargo from Mundra Port to Tuticorin Port by sea and using trucks only for the final delivery, the business could reduce freight costs. The only trade-off is a longer transit time. Companies with enough inventory can usually manage this without affecting deliveries.
The best transport mode depends on factors like your inventory levels, delivery commitments, and how close your facilities are to a port. At Epsilon Logistics, we study these factors and compare different transport options before recommending the most cost-effective solution.
Is coastal shipping right for your cargo? Contact Epsilon to find out.
Challenges and Honest Trade-offs
Coastal shipping offers clear cost and sustainability benefits, but it is not the right fit for every supply chain. Before making a modal shift, businesses should understand the operational challenges that come with moving cargo by sea.
Transit time and schedule frequency
Unlike trucks, which can be dispatched almost anytime, coastal vessels operate on fixed sailing schedules. Most routes offer only one to three departures per week, which means businesses have fewer shipping windows. For companies with tight delivery timelines, this often requires better inventory planning and higher buffer stock.
Port-side costs and dwell time
Lower sea freight rates do not always translate into lower total logistics costs. Port handling charges, terminal storage fees, and waiting time at busy ports can increase the overall cost of a shipment. When comparing transport modes, businesses should calculate the total landed cost, not just the freight rate.
First-mile and last-mile integration
The location of your factory or warehouse has a major impact on coastal shipping economics. A plant located close to a port will naturally benefit more than one located far inland. In many cases, the inland road movement to and from the port can account for a significant share of the total logistics cost. Epsilon's road transport and containerised transportation teams handle this leg as part of an integrated coastal plan—so you are not sourcing first-mile and last-mile separately.
Vessel availability and cargo consolidation
Domestic coastal shipping networks are still developing. Compared to international routes, businesses have access to fewer vessels and fewer LCL (Less-than-Container Load) consolidation services. Companies moving smaller cargo volumes may need to work around limited sailing schedules or wait for cargo consolidation.
Documentation and coordination complexity
The Coastal Shipping Act, 2025 has simplified the regulatory process, but coastal shipments still involve port documentation, vessel operators, terminal teams, transport providers, and cargo handling agencies. Coordinating multiple stakeholders can become challenging without an experienced logistics partner. Epsilon Logistics manages the complete movement through a single point of coordination, helping businesses reduce delays and administrative effort. See how it works.
The 2026 Trends Reshaping Coastal Shipping
Several trends are actively changing the coastal shipping landscape in India this year:
1. Containerization of coastal trade
Coastal shipping traditionally carried bulk and break-bulk cargo, but containerized coastal transport is growing rapidly. Manufacturers and FMCG companies are increasingly using shipping containers for domestic cargo because they reduce handling, improve cargo safety, and minimize damage during transit. Businesses can also use the same containers for both domestic and international shipments, creating a more efficient supply chain.
2. Ro-Ro expansion
IIndia is expanding its Roll-on/Roll-off (Ro-Ro) infrastructure to support the movement of vehicles and wheeled cargo. The Ministry of Ports, Shipping and Waterways (MoPSW) is developing dedicated Ro-Ro terminals, while services between Gujarat and southern India continue to grow. Instead of transporting vehicles by road over long distances, manufacturers can move them by sea at a lower cost and with reduced highway wear and fuel consumption.
3. Green corridors and carbon-linked freight contracts
More companies now track their Scope 3 emissions and work toward Science Based Targets (SBTs). As a result, they are looking for transport options with a lower carbon footprint. Since coastal shipping produces significantly fewer emissions than road transport for large cargo volumes, it is becoming an important part of sustainable supply chain planning. Epsilon includes carbon-efficient routing when designing multimodal and sea freight solutions.
4. Digital platforms and National Logistics Portal (NLP) integration
Digital platforms such as the National Logistics Portal (NLP) are making coastal shipping easier to manage. The platform is gradually bringing together documentation, vessel tracking, and port communication into one digital system. This reduces paperwork, improves shipment visibility, and simplifies coordination for shippers and logistics providers.
5. Feeder-coastal integration
Shipping lines are increasingly using coastal feeder services to connect smaller Indian ports with major container hubs such as Colombo, Nhava Sheva, and Mundra. This allows businesses to move cargo more efficiently between domestic ports and international shipping networks. Companies involved in both domestic and EXIM trade can benefit from a more connected logistics system, supported by Epsilon's coastal and international freight services.
6. Maritime Amrit Kaal Vision 2047 milestones
The government's Maritime Amrit Kaal Vision 2047 continues to shape India's maritime sector. The plan includes increasing the share of cargo moved through coastal shipping, encouraging the construction of coastal vessels, and expanding port capacity. Between 2026 and 2028, several Phase 2 Sagarmala projects are expected to become operational, improving cargo handling capacity and making coastal shipping more efficient on major trade routes.
How to Get Started with Coastal Shipping: A 6-Step Framework
Moving cargo from road to coast for the first time does not require an overnight transformation of your logistics model. A structured, phased approach reduces risk and builds confidence.
Step 1: Route and cargo audit
List your top 5–10 highest-volume transport routes based on tonne-kilometres. Focus on routes longer than 800 km where both the pickup and delivery locations are within 200 km of a coastal port. These routes are the best candidates for coastal shipping.
Step 2: Total landed cost modelling
Look at the complete cost of moving cargo—not just the freight rate. Include sea freight, port handling charges, first-mile and last-mile transportation, inventory holding cost for the extra transit time, and documentation costs. Compare this total with your current road or rail cost. Comparing only sea freight with road freight can lead to the wrong decision.
Step 3: Transit time and inventory policy review
Review whether your delivery commitments and inventory levels can support the longer coastal transit time. If needed, calculate the cost of keeping slightly higher safety stock. In many cases, the increase in inventory cost is still lower than the freight savings.
Step 4: Partner selection
Work with a logistics partner that has real coastal shipping experience—not just someone who can book space on a vessel. Look for a partner with operations at major ports, integrated first-mile and last-mile transport, and end-to-end shipment visibility. Epsilon combines coastal shipping with road, rail, and multimodal transport, so your cargo moves as one connected journey instead of passing through multiple disconnected providers.
Step 5: Pilot one lane
Begin with one high-volume route. Move 4–6 shipments through coastal shipping while continuing your regular road operations. Compare cost, transit time, cargo handling, and overall performance before expanding further.
Step 6: Scale and integrate
Once the pilot delivers the expected results, gradually add more routes. Align coastal shipping schedules with your demand planning and inventory management so you can achieve long-term cost savings across your network. Epsilon's 3PL and 4PL services are designed to support exactly this kind of network-wide integration.
Thinking about your first coastal shipping pilot? Contact Epsilon Logistics, and we'll help you build the plan.
Why Epsilon Logistics for Coastal Shipping in India
Coastal shipping is not a standalone mode - it is one leg of a journey that needs to be engineered end-to-end. This is where Epsilon Logistics is different from a vessel booking agent or a generic freight forwarder.
Epsilon has built its entire logistics model around integrated multimodal transport, with coastal sea freight as a core component rather than an afterthought. Here is what that means in practice:
Port presence where it matters: Epsilon operates across Gandhidham, Pipavav, Mundra, Cochin, Mangalore, Tuticorin, Kolkata, and Vizag; the backbone ports of Indian coastal trade. See our branch locations.
Seamless first-mile and last-mile: Our containerised road transport and rail freight services connect your plant or warehouse to the load port—and from the discharge port to your consignee—under a single logistics plan and one accountable partner.
End-to-end digital visibility: Every coastal shipment is tracked through Epsilon's proprietary platform, with proactive exception handling so you are never chasing updates.
Multimodal route design: Our logistics planners model coastal + rail + road combinations to find the optimal total landed cost for your specific cargo, routes, and delivery requirements. Explore our multimodal transport capabilities.
Carbon-conscious routing: Epsilon prioritizes rail and sea over road wherever route economics allow, supporting your Scope 3 emissions reduction goals as a documented logistics strategy.
Over a decade of experience: With 5,000+ premium clients served, ₹115+ crore in annual cargo value managed, and 457+ TEUs moved annually, Epsilon brings verified operational scale to coastal shipping solutions.
Epsilon does not just move coastal cargo. Epsilon engineers the entire supply chain journey around it.
Ready to explore coastal shipping for your business? Contact Epsilon Logistics and let's design a route that works.
Final Thoughts
Coastal shipping is no longer just an alternative to road transport. It is becoming a smarter way to build resilient, cost-efficient, and future-ready supply chains. With stronger government support, better port infrastructure, and growing multimodal connectivity, businesses now have a real opportunity to reduce logistics costs without compromising reliability. The key is not simply moving cargo by sea, but designing the right transport strategy for your routes, cargo, and business goals.
The real question isn't whether coastal shipping works. It's whether your logistics network is still relying on yesterday's transport decisions for tomorrow's business.
Frequently Asked Questions
What is the Coastal Cargo Promotion Scheme (CCPS)?
The Coastal Cargo Promotion Scheme (CCPS) is an initiative by the Ministry of Ports, Shipping and Waterways (MoPSW) that encourages businesses to shift suitable cargo from road to coastal shipping. Instead of focusing only on lower freight rates, the scheme helps reduce the overall cost of logistics through incentives such as reduced port charges and support on eligible coastal routes. It mainly benefits businesses moving high-volume cargo such as coal, steel, cement, fertilizers, and food grains over long distances. When combined with the Sagarmala programme, CCPS is helping make coastal shipping a more practical and cost-effective option for Indian manufacturers and shippers.
What is the Coastal Shipping Act, 2025?
The Coastal Shipping Act, 2025 is India's dedicated law for domestic coastal shipping. It replaced the cabotage-related provisions of the Merchant Shipping Act, 1958 with a framework designed specifically for coastal trade. The Act simplifies vessel licensing, expands the types of vessels that can operate on approved routes, enables digital documentation through the National Logistics Portal, and introduces a dedicated dispute resolution mechanism. For businesses, the biggest advantage is a simpler and more efficient regulatory process when moving cargo between Indian ports.
What does the Maritime Budget 2026 mean for coastal shipping?
The Maritime Budget 2026 continues India's investment in port infrastructure, multimodal connectivity, and logistics efficiency. Funding supports Sagarmala projects, port modernization, Ro-Ro terminals, digital logistics systems, and coastal connectivity. These investments improve port capacity, reduce congestion, strengthen first-mile and last-mile connectivity, and make coastal shipping more competitive for long-distance cargo movement. Businesses considering coastal transport can expect better infrastructure and improved operational efficiency over the coming years.
What is coastal shipping?
Coastal shipping is the movement of domestic cargo between two Indian ports using Indian-registered vessels. Since the cargo remains within India, businesses do not need export or import customs procedures. Coastal shipping is most suitable for high-volume freight travelling over long distances, where it can significantly reduce transport costs while lowering fuel consumption, road congestion, and carbon emissions compared to long-haul trucking.
What are the four main types of cargo in shipping?
Shipping cargo is generally classified into four categories: bulk cargo, containerized cargo, break-bulk cargo, and Ro-Ro cargo. Bulk cargo includes commodities such as coal, cement, and fertilizers that are loaded directly into a vessel. Containerized cargo consists of goods transported in standard shipping containers. Break-bulk cargo includes machinery, steel, and project equipment that cannot be containerized. Ro-Ro (Roll-on/Roll-off) cargo includes wheeled vehicles and heavy equipment that can be driven directly onto the vessel. The right cargo type determines the most suitable vessel, handling method, and transport strategy.
Which is the largest cargo company in India?
The answer depends on the segment of the logistics industry. Adani Ports and Special Economic Zone (APSEZ) is India's largest port operator by cargo throughput, while the Shipping Corporation of India (SCI) is the country's largest government-owned shipping company. Businesses looking for integrated coastal logistics typically work with providers that combine coastal shipping with road, rail, warehousing, and multimodal transport to deliver complete end-to-end supply chain solutions.
What are the four pillars of the shipping industry?
The shipping industry operates on four interconnected pillars: vessel operations, port infrastructure, maritime regulations, and logistics integration. Ships move the cargo, ports enable efficient loading and unloading, regulations create a safe and compliant operating environment, and logistics integration connects the first mile, sea journey, and last mile into one coordinated supply chain. Businesses achieve the greatest value when all four work together rather than as separate operations.
What are the major maritime events in India?
India hosts several maritime conferences and exhibitions each year, with the Maritime India Summit being the flagship event organised by the Ministry of Ports, Shipping and Waterways. These events bring together policymakers, port authorities, logistics providers, shipping companies, manufacturers, and investors to discuss infrastructure development, maritime policy, coastal shipping, sustainability, and future investment opportunities across India's shipping sector.
What are the key logistics priorities in India's Budget 2026?
India's Budget 2026 continues to prioritise infrastructure-led growth by investing in ports, multimodal logistics, coastal shipping, inland waterways, and PM Gati Shakti connectivity projects. These investments aim to lower national logistics costs, strengthen supply chains, improve cargo movement, and encourage businesses to adopt more efficient transport modes such as coastal shipping and rail for long-distance freight.
Which companies provide coastal shipping services in India?
India's coastal shipping ecosystem includes vessel operators, shipping lines, freight forwarders, and integrated logistics providers. While shipping companies operate the vessels, integrated logistics companies manage the complete journey by combining coastal shipping with road transport, rail freight, warehousing, customs support, and cargo visibility. Businesses usually benefit more from an end-to-end logistics partner than from booking only the sea leg of the shipment.
What is coastal shipping also called?
Coastal shipping is commonly known as cabotage in maritime law. It is also referred to as domestic sea freight, coastwise trade, or short sea shipping. Although the terminology varies, all these terms describe the movement of cargo between ports within the same country rather than international shipping routes.
How is the Coastal Shipping Act changing logistics in India?
The Coastal Shipping Act, 2025 does more than simplify regulations—it supports a broader shift towards multimodal logistics. By reducing administrative complexity and modernising coastal trade, the Act encourages more businesses to evaluate sea transport for long-haul domestic freight. As port infrastructure and multimodal connectivity continue to improve, coastal shipping is expected to play a much larger role in reducing logistics costs and improving supply chain efficiency across India.