The Directorate General of Shipping (DG Shipping) of India has announced the continuation of certain exemptions under the Merchant Shipping Act, 1958, following the enactment of the Merchant Shipping Act, 2025 and the Coastal Shipping Act, 2025. This announcement aims to ensure operational continuity for shipping operators in light of the recent regulatory changes.
Regulatory Transition
The new Merchant Shipping Act, which came into force on March 15, 2026, repeals the Merchant Shipping Act, 1958. This recent circular indicated that rules, regulations, and exemptions established under the repealed laws will continue to remain effective until officially revoked. This approach aligns with the provisions of the Coastal Shipping Act, which also took effect on the same date.
Key Exemptions Continuing
Among the exemptions that will remain effective are relaxations allowing the coastal movement of various commodities by foreign vessels. These include:
- Transshipment containers and empty containers.
- Agricultural, horticultural, fisheries, and animal husbandry products.
- Fertilizers transported by foreign-flagged vessels.
- Foreign-flagged vessels chartered by Indian entities for transporting exempted goods.
- Cabotage relaxation for cruise ships to visit more than one Indian port is extended until February 4, 2029.
These exemptions are critical for facilitating the free flow of goods and maintaining operational flexibility for shipping companies operating in Indian waters.
Implications for Shipping Operations
The decision to extend these exemptions aims to provide clarity and support for shipping operations during this transitional period. By allowing existing regulations to remain in force, the DG Shipping alleviates potential disruptions in maritime activities, which is crucial for meeting domestic supply chain demands and international trade obligations.
Why It Matters
The extension of these exemptions is significant for operators navigating the complexities of India’s evolving maritime legislation. As shipping companies adjust their operational strategies to comply with new legal frameworks, the continuity of prior exemptions underlines the government’s commitment to facilitating ease of doing business in the maritime sector. This ensures that port efficiencies and shipping fluidity are maintained, minimizing potential disruptions in both coastal and international trade operations.
