The shipping industry is in a state of flux, with shippers casting a wary eye on ocean liners’ ventures into freight forwarding. Many remain unconvinced about the long-term viability of this shift, particularly questioning whether carriers are ready to embrace terms and conditions that create a fairer playing field. Historically, carriers have approached this space with what some describe as a “missing level of respect” for their customers. A quick glance at the terms and conditions they offer reveals a distinct tilt in their favor—hardly a surprise, but a sticking point for shippers seeking equitable partnerships.
For those contemplating a shift in sourcing strategies, industry “best practice” advice points to India as a rising star. According to recent projections, India boasts the third-largest predicted trade growth globally between 2024 and 2029, trailing only China (12%) and the United States (10%). With an anticipated 6% share of additional global trade over the next five years, India’s rapid growth in speed and scale makes it an attractive option for shippers looking to diversify.
India’s Maritime Ambitions Take Shape
India’s growing prominence isn’t just theoretical—it’s being backed by strategic investments. The Banga family, owners of Hong Kong-based Caravel Group and Fleet Management, recently acquired India’s International Maritime Institute (IMI) for an undisclosed amount. This move underscores an “urgent challenge” facing the global shipping industry: attracting and developing young talent to sustain operations. The Banga family has pledged to preserve IMI’s legacy while injecting resources into curriculum upgrades, faculty development, and expanded career placement programs. As digitalization, automation, and sustainability reshape how ships are operated, IMI is poised to equip seafarers with the skills needed to thrive in this evolving landscape.
Labor Shortages and Global Solutions
Meanwhile, acute labor shortages are prompting creative solutions elsewhere. South Korea, a shipbuilding powerhouse, is reaching beyond its borders to fill positions at its bustling shipyards. This summer, 280 workers from landlocked Uzbekistan will arrive in Ulsan, an industrial hub, to help meet demand. The country has faced a significant manpower crunch in recent years, driven by a surge in shipbuilding contracts. To address this, Seoul has raised its annual skilled worker visa limits and forged training and recruitment pacts with Asian nations. Beyond Uzbekistan, South Korea has tapped Nepal—another landlocked nation—for up to 3,000 workers, alongside labor from Southeast Asian countries like the Philippines, Indonesia, and Thailand.
Regional Developments in Logistics
In the Philippines, A.P. Moller Capital has struck a deal to acquire a 40% stake in AC Logistics (ACL) from Ayala Corporation. This move signals growing interest in Southeast Asia’s logistics potential, as global players seek to capitalize on the region’s strategic position and economic growth.
Closer to home, Brisbane’s Autostrad Terminal has announced a temporary halt to all ship and yard operations from 07:00 to 11:00 on Wednesday, March 26, 2025. The pause is due to a Maritime Union Australia (MUA) stop-work meeting, a reminder of the critical role labor dynamics play in keeping the industry moving.
The Road Ahead for Shippers
As ocean liners push deeper into freight forwarding, shippers face a complex landscape. Carriers’ reluctance to level the playing field may test trust, while emerging markets like India offer fresh opportunities. At the same time, the industry’s transformation—driven by technology and sustainability—demands a skilled workforce, prompting innovative approaches to recruitment and training worldwide. For businesses like NZ Freight, staying ahead means keeping a close eye on these trends, balancing risk with opportunity, and navigating the ever-shifting currents of global trade.