India Worries About its Ageing Shipping Fleet

By Aiswarya Lakshmi
Saturday, February 27, 2016
Photo: Shipping Corporation of India

 India's troubled shipping sector has been passing through tumultuous waters in recent years with over 40 per cent of the country’s fleet older than 20 years and about 12 per cent of them being 12-15 years old, says the Economic Survey 2015-16 , tabled in Parliament by Finance Minister Arun Jaitley on Friday.

 
Expressing concern over the condition of India's fleet, it said it is aging and "42.42 per cent of the fleet is over 20 years old and 12.43 per cent in the 15-19 age group." 
 
The decline in the Baltic Dry Index, a freight index that depicts the robustness of trade, from 10,720 in May 2008 to 386 in January 2016 “is a reflection of the slowdown in India’s and the world’s merchandise trade as well as of overseas shipping services,” according to the statement tabled in Parliament.
 
"The shipping sector has been passing through tumultuous waters in recent years... There is urgent need to increase India's shipping fleet. With asset prices currently being serendipitously low, the time is right to acquire new generation ships to replace ageing ones," it said. 
 
“There is an urgent need to increase India’s shipping fleet. With asset prices currently being low, the time is right to acquire new generation ships to replace ageing ones,” according to the survey. There is a need for cheaper finance and longer fund tenure. “At least the issue of longer tenure for loans to the shipping sector could be urgently addressed.”
 
The significance of the sector can be understood from the fact that about 95 per cent of India's trade by volume and 68 per cent in terms of value is transported by sea. 
 
As on 30 November 2015, India had a fleet strength of 1,246 ships with dead weight tonnage (DWT) of 15.37 million. 
 
The survey said import of cheap Chinese steel billets into the major ship-breaking locations is resulting in falling demand for scrap ships. 
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

ATB Design Comes of Age

The emerging trend of marrying the design of an articulated tug and barge (ATB) to a particular propulsion system to maximize efficiencies of that system has, of late,

Cenac Marine to Christen New Vessel, Donate Barge

A ceremony will be held July 29 at Cenac Marine Services headquarters in, Houma, La. To commemorate the christening of its newest vessel, M/V Quincey Cenac, as

Sanmar Building 150th Robert Allan Designed Tug

Robert Allan Ltd. and Sanmar Denizcilik A.S. have reached a milestone in their ongoing relationship: scheduled to be launched later this year, a RAstar 2800 will

Government Update

China, Russia Navies to hold S. China Sea Drills

China and Russia will hold "routine" naval drills in the South China Sea in September, China's defence ministry spokesman Yang Yujun told a news conference on Thursday.

India Govt, Cochin Shipyard Pact on FY17 Growth Targets

Cochin Shipyard Limited (CSL) has entered into a Memorandum of Understanding (MoU)  with the government of India for the ongoing fiscal under which targets agreed

Cambodia Urged ASEAN to Avoid Words That Escalate Tension

Cambodia advised a grouping of South East Asian nations to avoid using words that "would escalate tension between China and the Philippines" in a weekend statement,

Logistics

Container-on-barge Returns to Baton Rouge

Container-on-barge services have returned to the Port of Greater Baton Rouge to provide the petrochemical industry with another option to move its products.   Operated by SEACOR AMH,

Asia Dry Bulk-Capesize Steady as Owners Spurn Low Rates

Owners anchoring ships rather than fix at low rates. W. Australia-China capesize rates hit over two-month low. Freight rates for large capesize dry cargo ships

Damen Presents Decommissioning Vessels Concept

Damen Shipyards Group has announced its latest concept design: the Damen Decommissioning Series. The vessel will specialize in three core areas of the oil and gas

 
 
Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pipelines Pod Propulsion Salvage Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0664 sec (15 req/sec)