2. CURRENT SITUATION IN
INDIA
The Indian shipping industry plays an important role
in the Indian economy as almost 90% of the
country’s international trade is conducted by the sea
.
India is ranked 15th in the world, with a shipping
tonnage of around 11.5 million gross tonnage (GT)
in 2011.
Today, India has around 1071 ships with 722 coastal
and 349 overseas ships, Indian coastal shipping is
highly fragmented .
3. The top 9 companies account for nearly 70% of the
total fleet by Dead Weight Tons and in terms of
number of ships, the top 9 companies only control
20% share of the fleet. Many companies own just 1
or 2 ships.
•The Indian shipping industry consists of
approximately 31 major shipping companies with
Shipping .
Corporation of India (SCI), the largest public sector
enterprise also being the largest in the country.
4. PORTS
India has a long coastline, spanning 7516.6
kilometres and is serviced by approximately 200
ports.
India has historically been serviced through 14 major
ports. Several, private ports outside the scope of
Major Ports Act has emerged in recent years.
•Mumbai is the largest port and handles 50% of all of
Indian export originating mainly from the Northern
and Central India.
5.
6. Bulk wise, the overall tonnage of all cargo shipped
through major ports in the 2010 was 560 million
tonnes.
10. SWOT Analysis of the Indian
Shipping Industry
Strengths
• India has access to two major shipping
routes.
• More than 7500 km coastline including
the island territories.
• Widespread ports.
11. Weaknesses
• The underinvestment in the India’s
marine sector has affected the
development of ports in the country.
• Inefficient judiciary system slowing the
development of new port infrastructure.
• High levels of bureaucracy prevents the
government funding from developing new
port projects in the country.
12. Opportunities
• Indian shipping companies having
acquisitions with foreign shipping
companies.
• More than USD $4bn is expected to be
invested in India's port sector.
• New major container terminals being
developed at the port of Chennai and
Mumbai.
13. Threats
• Major developments taking place in Sri
Lanka's port sector may reduce demand for
shipment services at Southern Indian
ports.
• A government tax on iron ore exports may
lead to a fall in bulk shipments at major
export terminals.
14. CHARTER
Charterer, in its literal definition, means engaging for
service under a contract. A charterer can own a cargo
and hire a shipbroker for delivery of the cargo at freight
rate. The freight rate can be per-ton basis for a specific
route or can be per day basis for the duration agreed
upon in the contract.
15. Shipping charterers might, for a specific period, hire
the ships from the owners of shipping companies
and trade them to be used as a cargo carrier at a rate
more than the rate of charter. They might re-let the
chartered ships to other Shipping charterers in the
market to make profit. A contract called charter
party is formed to register the type of ships used,
types of charterers, the rate of charter, the agreed
terms and conditions between the charterer and the
owner of the ships.
16.
17. TYPES OF CHARTERING
VOYAGE CHARTERING
The voyage chartering means that the ship-owner
promises to carry on board a specific ship a
particular cargo for a single voyage from one or
more loading ports to one or more discharging
ports.
The payment is called freight and the contract is
called a voyage charter party. Voyage charters
are concluded between the ship owner or
deponent owner and the charterer.
18. CHARACTERSTICS
Specific vessel, specific cargo, specific port and
specific routes.
Rights, duties and responsibilities of ship-owners
and charterers are determined by the charter party.
The charterer should be responsible for the
arrangement of the cargo, payment of freight
calculated according to the quantity of the cargo
loaded or carried and other expenses concerned.
The shipowner possesses and controls the vessel
and takes charge of the operation of the vessel and
the manning and management of crew.
19. TIME CHARTERING
The time chartering means that the ship-owner
provides a designated manned ship to the charterer,
and the charterer employs the ship for a specific
period against payment of hire instead of for a
certain number of voyages or trips. Time charter
generally does not include loading and unloading
costs in the charter rate.
Period
A single voyage
Several months or years
20. REASONS FOR TIME CHARTER
The time charterer may be a ship-owner who for
a time needs to enlarge his fleet or a cargo
owner with a continuous need for transport, who
does not want to invest money in a ship but
wants to have the control of the commercial
operation of the vessel. The charterer may be a
speculator taking a position in anticipation of a
change in the mark.et
21. CHARACTERSTICS
The ship-owner should be responsible for the
manning of crew and bears the wages and provisions
thereof.
The master shall be under the orders and directions
of the charterer as regards employment and agency.
If the charterer shall have reasonable cause to be
dissatisfied with the conduct of the master or
officers, the ship-owner shall on receiving the
complaint make a change in the appointments,if
necessary.
22. The charterer should be responsible for the operation
of the vessel and bear the variable operational costs
such as bunkers, port charges, handling charge and
canal tolls etc.
The ship-owner should bear the fixed operational
costs such as costs relating to the vessel capital,
ship’s maintenance and stores, insurance premium
and so on.
The ship is chartered as a whole/part and the hire is
calculated and collected according to the duration of
chartering and the agreed hire rate.
There are the provisions for the delivery/redelivery
of vessel.
23. BAREBOAT CHATERING
• The bareboat chartering is a charter of a different type.
This contract amounts to a lease of the ship from the
ship-owner to the charterer.
• The bareboat chartering ordinarily means that the vessel
is put at the disposal of the charterer for a long period
employment without any crew.
• The charterer thus will take over almost all of the ship
owner's functions except for the payment of capital cost.
This means that the charterer will have the commercial
as well as the technical responsibility for the vessel and
will pay for maintenance, crew costs and insurance, etc.
24. REASON
Bareboat chartering is less common than other
types of contract.
It is sometimes used where a shipowner or ship
operator wishes to operate ships or to
supplement his fleet for a period of time without
incurring the financial commitments of actual
ownership, but at the same time requires to have
full control of the chartered vessel, including
control of its navigation and management.
25. Further, bareboat chartering is sometime
employed in connection with the financial
arrangements for purchase of the vessel on
installment terms. The bareboat charter then
serves as a hire/purchase contract, by which the
shipowner/seller retains formal ownership and
thereby security in the vessel until the full
purchase price is paid.
26. WORLD SEA BORNE
TRADE
Maritime transport is essential to the world’s
economy as over 90% of the world’s trade is carried
by sea and it is, by far, the most cost-effective way
to move en masse goods and raw materials around
the world.
Maritime activity has a key role to play in the
alleviation of extreme poverty and hunger as it
already provides an important source of income and
employment for many developing countries, such as
the supply of seagoing personnel and ship recycling,
ship owning and operating, shipbuilding and repair
and port services, among others.
27. The International Maritime Organization (IMO) is
the United Nations (UN) system’s regulatory
agency for the maritime sector. Its global mandate
is “safe, secure and efficient shipping on clean
oceans”. IMO pursues that mandate by adopting
international maritime rules and standards that are
then implemented and enforced by Governments
in the exercise of flag, port and coastal State
jurisdiction.
IMO’s rules and standards are accepted by
Governments and the global shipping industry
because they provide a single, universal
framework governing maritime operations and
ensure the efficient, safe and environmentally
friendly carriage of global trade.
28. Driven in particular by a rise in China’s domestic
demand as well as increased intra-Asian and
South– South trade, international seaborne trade
performed better than the world economy, with
volumes increasing at an estimated 4.3 per cent in
2012, nearly the same rate as 2011. About
9.2 billion tons of goods were loaded in ports
worldwide, with tanker trade (crude oil, petroleum
products and gas) accounting for less than one
third of the total and dry cargo being responsible
for the remaining lion’s share
29.
30. Primary passages are the most important since
without them there would be limited cost effective
maritime shipping alternatives which would
seriously impair global trade. Among those are the
Panama Canal, the Suez Canal, the Strait of Hormuz
and the Strait of Malacca, which are key locations in
the global trade of goods and commodities.
Secondary passages support maritime routes that
have alternatives, but would still involve a notable
detour. These include the Magellan Passage, the
Dover Strait, the Sunda Strait and the Taiwan Strait.
31. MAJOR SEA PORTS IN THE
WORLD
Port of Shanghai
Port of singapore
Port of Hongkong
Port of Dubai
Port of New york
Port of Mumbai
Port Tokyo
Port of Rotterdam
Port of Perth
