Shipping Industry - Analysis

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Indian shipping has the 14th largest fleet in the world as per deadweight tonnage. Indian shipping fleet consists of around 515 vessels with a grt of 7.06 million and dwt of 11.5 million ones. The industry is governed by 3 separate Acts viz. The Merchant Shipping Act, 1958, The Inland Vessels Act, 1917 and The Coasting Vessels Act, 1838. While most of the vessels are registered under Merchant Shipping Act and dealt within the sector, smaller barges and coastal vessels are governed by the latter two Acts, and lighterage or barging industry comes under port sector. The industry has historically catered to only domestic shipping requirements, although the private sector companies like Great Eastern Shipping Company and Essar Shipping are increasingly getting involved in international cross trade. Notwithstanding this focus on Indian trade, Indian shipowners’ share in the country’s overseas trade is hardly 30 per cent in volume terms. In value terms, it is much lower to a meager 12 per cent of India’s total overseas shipping bill of USD 5.0 billion due to negligible share of Indian shipowners in the trade of high value goods like general cargo and containers.

Shipping is not just about vessels and tonnage. Shipping capabilities of a nation are not solely measured in terms of the quantum of tonnage under control. In a knowledge based economy, soft intangible parameters like human capital, information technology and expertise are becoming increasingly important giving rise to innumerable opportunities. India has already become the source of quality seafarers to global shipowners. Indian shipping firms can rely on the inherent IT skills of Indians to play a pivotal role in IT activity involved in international shipping and the country may come up as a business center for information processing requirements of the international ship owners