Global challenges disrupting demand in maritime sector: Experts at BS Infra

Captain Amit Singh of Mitsui OSK Lines and Kapil Mahajan, global chief information and technology officer, Allcargo Logistics, discussed how the global challenges are impacting the maritime sector

The Indian maritime sector is navigating major geopolitical disruptions while adapting through innovation and policy support, experts said. Speaking at the first edition of Business Standard's Infrastructure Summit in New Delhi on Thursday, Captain Amit Singh of Mitsui OSK Lines (MOL) and Kapil Mahajan, global chief information and technology officer, Allcargo Logistics, discussed how global uncertainties and increasing use of technology are impacting the shipping and logistics sector.  CATCH BS INFRASTRUCTURE SUMMIT 2025 UPDATES LIVE 

Highlighting global challenges, Singh said the shipping industry has been receptive to change, and MOL is working around geopolitical uncertainties to support the sector. Mahajan said that demand patterns have been disrupted, with global trade hit hard by ongoing wars and geopolitical tensions. Vessel movements have slowed, global demand has declined, and forecasts have gone awry, though he expressed hope for a turnaround.

 

 

Singh said that the turnaround timing of the ports has significantly improved. While constantly monitoring the long routes business, MOL is also increasingly focusing on the regional business. "We are deploying bigger vessels on longer routes, but also focusing on the regional business through feeder ships. We are looking at areas which can augment our shipping businesses," he said. 

Govt policies have been helpful

Talking about the startup ecosystem, Mahajan said India’s startup sector is thriving, however, scaling remains a challenge, as many companies move to Dubai, the UAE, the US, or China to expand.

   

However, Singh noted that government support and policies have been instrumental in aiding the industry. “The government is very interested in developing the maritime sector; it has introduced a maritime fund and has been very supportive. We have lagged for two decades, but now the time has come that in the next 15-20 years, we have to significantly increase our market share in shipbuilding," he said.

 

Mahajan highlighted that vessel movement along trade lanes currently faces several challenges. Government policies aimed at expanding direct trade routes from India would provide significant relief, he said.

Technology adoption is crucial

Mahajan emphasised that technology is the key enabler, noting that India ranks third globally in AI adoption after the US and China. "There's a sense within the entrepreneurs that technology and artificial intelligence are the next big things," he said.

 

On deep-sea cables, Singh said they require constant monitoring, which the government has been doing effectively. However, in case of damage, response remains a challenge as cable repair ships are scarce and time-consuming to deploy. Singh suggested that the government keep such ships on standby to ensure quick restoration in case of disruptions. "These vessels can be used both for laying new cables and carrying out repairs," he said.

India not moving at the required pace

Singh called for an ecosystem that promotes the use of Indian-flagged vessels to ensure a larger share of goods is transported on them. Mahajan added that executing GatiShakti by 2030 would be a game-changer, but stressed that India is not moving at the pace required compared to global standards. "We feel like we are doing enough, but if you look at the world, we are not moving at the pace we need to," said Mahajan.