With the world’s largest population and an increasing share of the global economy – including an annual growth rate of 15 percent in 2022, increased access to the Indian market is a major win for economic development. Last Thursday, the Georgia Ports Authority announced the Japanese-owned Ocean Network Express (ONE) will be launching a new container ship service between Savannah and west India, the ninth service to be landing in Savannah from India.
“ONE’s West India North America service recognizes a growing shift in global sourcing, with more manufacturers adding operations on the subcontinent,” said Griff Lynch, GPA president and CEO. “With the world’s largest population, India also represents a tremendous market opportunity for U.S. exporters. The Port of Savannah is strategically positioned to take advantage of this trend, providing more connections to India for supply chain flexibility.”
In addition to picking up another service from India, ONE’s selection of Savannah gives the Port of Savannah 37 global ocean carrier services, the most of any port from the mid-Atlantic to the Gulf of Mexico. India is quickly adding export volume – refined petroleum is their largest export and the U.S. is the country’s largest trading partner. Their second largest export? Anyone who has called a contact help line might be able to guess – miscellaneous business, professional and technical services.
In addition to the increasing growth of the Indian economy, there is a definitive move to diversify manufacturing out of China and India is certainly a beneficiary. A study by Boston Consulting Group (BCG) in 2022 found a 44 percent increase in exports to the U.S. between 2018 and 2022 – a value of $23 billion. The study from BCG found that 90(!) percent of manufacturers have already relocated a portion of their Chinese production in the last five years with the same number expected to continue this activity in the next five years. India’s internal logistics are a higher cost than other Asian manufacturers but significant infrastructure investments are expected to bring these costs down – making the business case stronger for even more manufacturing to move there. The supply chain scares of Covid, combined with international relations issues from China, are a huge boon for India.
“At ONE, we strive to embrace and support our customers’ growth patterns. The rapid move of so many toward India is ripe for collaboration,” said Zach Connors, senior director and head of sales of ONE North America. “Our new WIN service is a flexible and dynamic product, designed to catalyze development of the India-North America market and beyond. Enhanced access to additional growing economies along this new route, by direct call and transshipment, will provide even further value to ONE’s partners in their pursuit of supplier/buyer diversification.”
