Freight forwarders and shippers focusing on India–Middle East trade routes take note: Hapag-Lloyd has partnered with Chinese feeder operator Greta Shipping to launch a new dedicated service connecting the west coast of India with the Persian Gulf – IG1. This service avoids the Strait of Hormuz by calling at Khorfakkan on the eastern coast of the UAE, with onward delivery by truck. This routing offers a new cost and transit option for your shipments.
How the New IG1 Service Operates
Deploying two vessels of around 2,600 TEU, the IG1 service runs on a weekly fixed loop:
Kandla (India) → Nhava Sheva (India) → Khorfakkan (UAE) → Back to Kandla
- Sea transit from India to Khorfakkan: approx. 5–6 days
- Truck from Khorfakkan to Jebel Ali: approx. 1–2 days
This routing is significantly faster than sailing around the Cape of Good Hope, though it adds a road segment and potential waiting time compared with direct calls to Jebel Ali before regional tensions.
Pricing Structure: Split Ocean Freight + Land Haulage
For shippers, rates can be clearly separated into two parts for transparency:
- Ocean freight: India → Khorfakkan
With more vessels calling Khorfakkan, space is relatively available, and rates are often lower than via longer Cape of Good Hope routes to Jebel Ali.
- Land haulage: Khorfakkan → Final destination
Costs vary by destination and are affected by fuel surcharges and customs efficiency.
- Ocean Freight (Kandla/Nhava Sheva → Khorfakkan)
- Land Haulage Surcharge (Khorfakkan → Final Destination)
This split makes cost adjustments easier if ocean or land rates change.
Why Khorfakkan? Avoiding Hormuz for Cost & Risk Control
Khorfakkan is located outside the Strait of Hormuz, offering a natural deep‑water port capable of handling large container ships. By stopping here instead of entering the Persian Gulf, war risk premiums and re‑routing fuel costs are greatly reduced. This model, previously tested by MSC and Maersk, has now become a fixed weekly service – meaning it is no longer a temporary workaround but a stable, regular option.
About Greta Shipping
Greta Shipping is a Chinese‑owned feeder line fully owned by Xiamen C&D Group. Founded in Singapore in 2024, the company leases vessels initially and is gradually building its owned fleet, including its first vessel Rio Kobe (3,534 TEU). The partnership with Hapag-Lloyd marks its entry into mainstream trades. While reliability is improving, we suggest using this service as a backup option for now if you have regular India–Middle East cargo.
3 Practical Tips for Shippers
- Confirm latest trucking rates and transit times from Khorfakkan to your destination before booking, as costs and speed vary by location and customs conditions.
- Monitor Greta Shipping’s fleet expansion (1,500–4,000 TEU vessels planned). As more owned ships enter service, reliability will improve and the service can become a primary option.
- Add “Khorfakkan transshipment + truck delivery” as a standard alternative for your India–Middle East customers. It is often more cost‑effective and faster than long‑haul re‑routing to Jebel Ali.
