Why South Asia's ocean freight map is changing
For decades, Indian ocean freight has faced a structural bottleneck. Most major Indian container ports feature water depths between 12 and 15 metres, which cannot accommodate modern ultra-large container vessels (ULCVs) carrying 18,000 to 24,000 TEUs. As a result, approximately 75% of India's transhipped container volume had to be moved on smaller feeder vessels to offshore hubs such as Colombo in Sri Lanka, Singapore, Port Klang in Malaysia, or Jebel Ali in Dubai.
Feeder transhipment introduces real friction into supply chains. Every extra vessel transfer requires double handling at container yards, additional feeder freight surcharges, separate terminal handling charges (THC), and potential transhipment rollovers during peak season or bad weather. That extra leg regularly adds 4 to 7 days to total transit times and between $200 and $300 per TEU in logistics overhead.
24-metre natural water depth
Vizhinjam (UN/LOCODE: INVII) features a natural water depth of up to 24 metres, making it the deepest container port in South Asia. Ultra-large container ships can berth fully laden at any state of the tide without requiring expensive, continuous maintenance dredging.
From transhipment hub to full EXIM gateway
Since starting commercial operations in late 2024, Vizhinjam has operated primarily as a transhipment hub, handling more than 2.2 million TEUs across 1,000 vessel calls by July 2026. Global ocean carriers, including MSC, Maersk, and CMA CGM, have used the terminal to transfer containers between mainline East-West services and regional feeder networks.
The milestone reached on 18 August 2026 expands this mandate. By flagging off its first export container, Vizhinjam opened direct international export and import channels for domestic manufacturers, agricultural exporters, and industrial importers. Shippers located in southern and central India, including the manufacturing clusters of Tamil Nadu, Karnataka, Kerala, and Andhra Pradesh, can now load directly onto mainline vessels calling at the port rather than routing goods through distant ports or foreign hubs.
The strategic comparison: Vizhinjam vs Colombo
Colombo Port has historically handled over 40% of Indian transhipped containers due to its prime position along the East-West maritime corridor. However, routing Indian cargo through a foreign transhipment hub exposes cargo owners to external risks, including foreign currency fluctuations, transhipment terminal congestion, and feeder vessel availability constraints.
Vizhinjam sits practically adjacent to the same main East-West sea lane, requiring a deviation of only 10 to 12 nautical miles. By berthing mainline vessels directly on Indian soil, shippers gain customs jurisdiction transparency, eliminate cabotage and foreign transhipment compliance steps, and maintain direct control over container release schedules.
Initial EXIM operating rules: DPD, DPE, and FCL only
Logistics managers planning shipments through Vizhinjam must note the specific operational conditions established for the initial EXIM phase. The terminal is operating under strict direct-clearance procedures:
- Full Container Load (FCL) only: The terminal currently handles factory-stuffed FCL shipments. Less-than-Container Load (LCL) and loose cargo shipments are not permitted during this initial phase.
- Direct Port Delivery (DPD) for imports: Inbound containers are moved directly from the terminal to the registered importer's factory or warehouse, bypassing intermediate holding yards.
- Direct Port Entry (DPE) for exports: Outbound boxes must be stuffed and sealed at the shipper's premises or an authorized facility before moving directly to the port gate for vessel loading.
- No on-dock Container Freight Station (CFS): Because there is no attached on-dock CFS, cargo that requires unstuffing, physical sorting, or customs examination at a container freight station must be routed through external authorized facilities.
State and port authorities have initiated the Mission Samudra development framework to construct adjacent logistics parks, dedicated off-dock CFS facilities, and industrial clusters. Until those facilities open, non-FCL cargo and loose consignments should continue using established gateway ports with dedicated CFS infrastructure.
How direct calls affect freight costs and lead times
Evaluating Vizhinjam against traditional shipping routes involves weighing ocean freight savings against inland transportation logistics. For cargo originating within 300 to 500 kilometres of the port, the advantages are clear:
- Elimination of feeder surcharges: Direct mainliner calls remove feeder vessel freight rates and secondary port handling fees.
- Lower transhipment risk: Containers stay on one vessel from origin to destination port, eliminating the chance of rolled cargo at congested intermediate transhipment terminals.
- Predictable vessel turnaround: Being situated only 10 to 12 nautical miles from the international shipping lane minimizes vessel deviation time, encouraging carriers to maintain strict schedule reliability.
- Faster inventory cycle times: Shaving nearly a week off ocean transit helps shippers reduce working capital tied up in transit inventory.
Check inland road and rail connectivity
Ocean freight savings must be balanced against inland haulage costs. Shippers located farther inland should compare door-to-port trucking and rail freight rates to Vizhinjam against established routes to Nhava Sheva (JNPT), Chennai, or Tuticorin (V.O. Chidambaranar) before adjusting routing guides.
Checklist for shippers and freight forwarders
If you are considering Vizhinjam for upcoming export or import bookings, follow this practical checklist:
- Verify carrier schedule rotations: Check which mainline carrier strings have added scheduled direct calls at Vizhinjam (INVII) versus services that still route through feeder connections.
- Register for DPD and DPE: Ensure your entity and customs broker are registered with Indian Customs for Direct Port Delivery and Direct Port Entry protocols.
- Confirm container stuffing capability: Make sure your production facility can handle on-site container stuffing and self-sealing, as on-dock CFS stuffing is not available.
- Calculate total landed cost: Compare door-to-door freight, including inland trucking, port terminal handling charges, and ocean base rates against your existing routing.
- Track milestone events: Monitor container gate-in, customs clearance, and vessel loading timestamps closely during initial shipments to establish reliable transit baselines.
The bottom line
The start of direct EXIM operations at Vizhinjam marks a significant shift in South Asian container logistics. By providing 24-metre deepwater access directly on the East-West trade route, the port gives Indian exporters and importers a viable direct gateway that cuts feeder transit times and eliminates intermediate handling costs. As long as your shipments meet the FCL and DPD/DPE criteria, adding Vizhinjam to your routing options can deliver tangible cost and schedule advantages.