Vietnam’s Hai An Container Transport (HACT) launched a direct shipping service from Chennai on October 1, 2026, to connect Indian trade hubs with Malaysia, Vietnam, and China. This new maritime link aims to support the $18 billion bilateral trade relationship. While it offers a boost for automotive and electronic exports, the project faces pressure from intense regional competition and rising operating costs.
Vietnam-based Hai An Container Transport (HACT) has officially commenced its new container shipping service, known as the CVI service, from Chennai Port. The route, which began operations on October 1, 2026, creates a direct maritime link between Chennai and key regional trade hubs including Port Klang in Malaysia, Haiphong in Vietnam, and Nansha in China. This move represents a strategic effort to improve supply chain efficiency for manufacturers in Southern India.
Strengthening Indo-Vietnam Trade
The introduction of this service comes as India and Vietnam look to deepen their economic ties. Trade between the two nations reached $18 billion in the last fiscal year, and both governments have set an ambitious target of reaching $25 billion by 2030. For Chennai, the service is particularly relevant due to the city’s proximity to major automobile and engineering manufacturing clusters in Tamil Nadu. The ability to move goods directly to Vietnam and China via this route is expected to assist companies in managing logistics more effectively, particularly for electronic hardware imports and industrial exports like iron, steel, and auto components.
Operational Strategy and Fleet Expansion
HACT is operating this service with a vessel capacity of approximately 1,700 TEU (twenty-foot equivalent units). To manage its Indian operations, the company has appointed Samsara Shipping Private Limited as its general agent. This launch is part of a broader expansion strategy for Hai An. The company is currently investing in fleet upgrades, including plans for larger 7,100-TEU vessels scheduled for delivery in 2028. This move suggests that the company is preparing for higher cargo volumes and intends to maintain a long-term presence in the competitive Asian shipping lanes.
Market Risks and Monitoring Points
While the new service improves connectivity, the shipping and logistics sector in the region remains highly competitive. Players in the intra-Asia trade lane often face significant pressure on profit margins due to intense competition among regional carriers. Investors and trade participants should monitor several factors that could influence the success of this route.
One significant risk involves high capital expenditure, as the company is spending heavily to expand its fleet, which could impact debt levels if cargo volumes do not meet expectations. Additionally, operating costs are sensitive to global fuel prices and potential geopolitical disruptions that can cause route restrictions or delays. The sustainability of this service will depend on whether the company can maintain consistent volume demand from the automotive and electronics sectors in both India and Vietnam. The key monitorable for the coming quarters will be whether this route achieves stable utilisation rates and how the company manages the cost pressures associated with its ambitious fleet expansion program.