2. H. Aravinth and Dr. J. Rengamani
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the companies should be given a chance. Government subsidy vessels were only
assured for the Cargo was assured. Recently after a long period of decline, both
tonnage and fleet size have grown, with the addition of ships - tugs, survey vessels,
towing vessels as well as pilot vessels belonging to ports and maritime boards. During
April 2002 & March 2003 these were added. There are as many as 55 shipping
companies in the Industry, out of which 19 deal with coastal trade and 29 are engaged
in overseas trade. The rest operate in both types of trade.
The Indian Shipping industry is governed by 3 separate Acts such as The
Merchant Shipping Act in 1958, The Inland Vessels Act in 1917 & The Coasting
Vessels Act in 1838. Most of the vessels are registered under Merchant Shipping Act
and are dealt within the sector, smaller barges and coastal vessels are governed by the
other two Acts.
Historically Shipping industry has catered to only domestic shipping
requirements, while the private sector companies like Great Eastern Shipping
Company and Essar Shipping are increasingly getting involved in international cross
trade. Terms and in value terms, it is much lower to a meager 12% of India's total
overseas shipping bill of USD 5.0 billion. It is due to the negligible share of
shipowners in the Indian trade of high value goods like general cargo and containers.
The focus is on Indian trade and shipowners' share in the country's overseas trade is
hardly 30% in volume.
Shipping Industry is meaning not only just vessels and tonnage. Shipping
capabilities of any country are not solely measured in terms of the quantum of
tonnage under control. While in knowledge based economy, soft intangible
parameters like human capital, information technology and expertise are becoming
increasingly important for increasing innumerable opportunities. Today India has
become the source of quality seafarers to global shipowners. Indian shipping firms
normally rely on the inherent IT skills of Indians to play a pivotal role in IT activity
involved in international shipping and the country can come up with a business center
for information processing requirements of the international ship owners.
Usage of sea transport for the bulk cargo transport is the natural advantage of a
vast coastline of India. Due to the policy of liberalization, the Indian shipping
industry, major ports, as road ways have been given to the private sector. The
categories of ships are crude tanker, product tanker, bulk carriers, etc. All these are
brought under the Open General License (OGL) to facilitate acquisition at
competitive price.
For acquisition of such companies the Automatic approval is also available even
for the categories which are not covered under OGL i.e. barges, tugs and boats, etc.
Shipping companies have been given liberty to retain sale proceeds of their ships
abroad and utilize them for fresh acquisition.
Approval for Foreign direct investment up to 74% is also provided by the Time
Charter of ships by Indian Shipping Companies. 140 shipping companies were in
operation in India at the end of March 2003, with the Shipping Corporation of India
being the biggest in the country claiming a 42% share of the total Indian tonnage. The
country presently has 12 major ports, 184 other ports, nine shipyards and a coastline
of 7517 km.
Indian shipping Industry has become the 14th largest fleet in the world as per
deadweight tonnage. The shipping fleet of India consists of around 515 vessels with a
grt of 7.06 million and dwt of 11.5 million ones. It has about 616 ships, with a total
capacity of 6.62 million tons Gross Registered Tonnage (GRT). Out of which about
3. Study of Indian Vessel Fleet Growth From 2003 To 2012
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258 ships are engaged in overseas trade and the rest ply inland routes. Mercator lines-
India's third largest shipping Company.
When compared to World Shipping Tonnage the share of Indian Shipping
Tonnage as in term of tonnage (GT) by Flag of Registration stood at 1.19% on
1.1.2006, 1.1.2007 at 1.16% and 1.18% on 1.1.2008 as per data available.
There are immense opportunities which are needed to be grabbed by the shipping
companies of India. Liquefied natural gas (LNG) has to be imported to harness India's
power and fertilizer projects. This plan would involve huge volume of business for
shipping industry amounting to several billion dollars. The process would go up to the
expense of US$200 million for one ship to carry LNG. Therefore, an important step
for the Indian shipping companies would be to build strategic tie-ups with the foreign
counterparts.
In recent times the importance of Indian Navy in the high seas has never been felt
so much because of the ongoing piracy activities off the Somalian Coast. Indian
shipping industry contributed 8% of the entire world trade in terms of volume, which
was the contribution of nominal 1.3% in monetary terms. India and China were in the
same position 30 years ago, but today China has raced ahead in the field. Of the $30
billion freight market in India; only 8% of freight of Indian flagged ships is carried.
There is a lot of scope for growth in that area too.
The Ship which is registered in the IRS (Indian Register of Shipping) is called as
Indian fleet. This fleet follows the protocol of the IRS. The ship which is registered
under IRS gets some additional benefits when compared to other country registry. In
some cases some vessels register itself in open registry then it is called as Flag of
Convenience.
Objectives
To analyze the growth of Indian fleets.
To analyze the growth of Dry Cargo Bulk Carrier.
To analyze the growth of Oil Tanker Vessels
To analyze the growth of specialized offshore services.
Statement of the Problem
This study re-examines the growth of ship, which is registered in the IRS for period of
2003 to 2012. This talks about the growth and decline in the Indian Register of
Shipping. The following are the details for declining in Indian Register Vessels.
Difficulty in Financing New Ships.
India’s Low Credit Rating.
Time required for registering Mortgages.
Low operating efficiency.
Higher Insurance Costs.
Shortage of Efficient Labor.
Steep Tax Rates.
4. H. Aravinth and Dr. J. Rengamani
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Research Gap
The Investors feels that it takes a long term to get the return on their Investment.
The Credit provided by bank is too low when compared to other country Banks.
The Time Taken for the process of Registering is too long.
The Operating takes a lot time far more than any other country.
The tax rates are higher here.
2. RESEARCH METHODOLOGY
Research Design – Exploratory Research
Data – secondary data collected from various journals, magazines and from websites.
Analysis
Table 1
GROWTH OF INDIAN FLEET- Dry Cargo Bulk Carrier
YEAR
No. Of Vessels
Dry Cargo Bulk Carrier
1 2
2003 87
2004 91
2005 99
2006 97
2007 106
2008 106
2009 101
2010 104
2011 123
2012 128
Source: Transport Research Wing, M/o Road Transport & Highways.
87 91
99 97
106 106
101 104
123
128
0
20
40
60
80
100
120
140
Year 2003 2004 2005 2006 2007 2008 2009 2010 2011
No Of Bulk Cargo Carrier
No of
Bulk
Cargo
Carrier
5. Study of Indian Vessel Fleet Growth From 2003 To 2012
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Table - 2
Source: Transport Research Wing, M/o Road Transport & Highways.
Table – 3
GROWTH OF INDIAN FLEET – Specialized Offshore Services
YEAR
Specialized
Offshore
Services
1 2
2003 31
2004 32
2005 36
2006 36
2007 35
2008 35
2009 38
2010 38
2011 38
2012 38
Source: Transport Research Wing, M/o Road Transport & Highways.
115
126 130 135 139 137 140
154 159
139
0
20
40
60
80
100
120
140
160
180
Year 2003 2004 2005 2006 2007 2008 2009 2010 2011
No.of Oil Tankers
No.of
Oil…
GROWTH OF INDIAN FLEET – Oil Tanker
YEAR No ofOil Tanker @
1 2
2003 115
2004 126
2005 130
2006 135
2007 139
2008 137
2009 140
2010 154
2011 159
2012 139
6. H. Aravinth and Dr. J. Rengamani
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3. FINDINGS
In the year 2003 the Bulk cargo Carrier ships registered to IRS amounts to 87. In 2004
there was a growth with increase in four ships, which amounts to 91. In 2005 there
was doubling of previous ships and amounts to 99. In 2006 the registry reduced by 2
ships amount to 97. In 2007 the total number of ships registered was seen a growth
and registered 106 ships. In 2008 the registry remained same. In 2009 there was steep
decline in the registry, which resulted in 101 ships registry under IRS. In 2010 there
was a slight growth to 104 ships registered under IRS. In 2011 there was tremendous
growth, where there was 123 ships registered under IRS. In the consecutive year the
ship registry increased to 128.
In the year 2003 the Oil Tanker registered to IRS amounts to 115. In 2004 there
was a growth with increase in four ships, which amounts to 126. In 2005 there was
also increase of ships, which amounts to 130. In 2006 the registry increased by 5 ships
amount to 135. In 2007 the total number of ships registered was seen a growth and
registered 139 ships. In 2008 the registry faced declining in the registry, which
amounts to 137. In 2009 there was growth in the registry, which resulted in 140 ships
registry under IRS. In 2010 there was a slight growth to 154 ships registered under
IRS. In 2011 there was tremendous growth, where there was 159 ships registered
under IRS. In the consecutive year the ship registry remained the same to 159.
In the year 2003 the Specialized off shore Ships registered under the IRS amounts
to 31. In the 2004 there was a little growth, which amounts to 32. In 2005 and 2006
the growth remained same to 36. In 2007 there was decline in the growth, which
resulted in 35 ships registering under IRS. In 2008 the ship registry remained same. In
2009 there was a slight growth, which amounts to 38ships. In 2010, 2011 and 2012
the ship registered under the IRS remained same to 38 ships.
The 1st
table and the chart describes that there is steady demand for the Bulk cargo
carrier ships.
The 2nd
table and the chart portrays there is tremendous use of crude oil in the
country, which forecasts the increasing demand for the oil tanker.
The 3rd
table and the chart portrays there is steady use of the specialized offshore
carriers.
31 32
36 36 35 35
38 38 38 38
0
5
10
15
20
25
30
35
40
Year 2003 2004 2005 2006 2007 2008 2009 2010 2011
No of Specialised Offshore Services
No of
Specialised
Offshore
Services
7. Study of Indian Vessel Fleet Growth From 2003 To 2012
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4. SUGGESTIONS
The paper work for registering under Indian Register of Shipping can be
reduced.
The credit limit can be increased for the IRS Ships.
The tax levied on the ships can be minimized.
Financing can be called by selling shares.
The awareness should be created among the investors.
Preference to Indian Flagged Vessels can be given for berthing.
Indian Flagged vessels credit period can be extended when compared to foreign
flag vessels.
5. CONCLUSION
This research concludes that there is a huge potential for Indian Register of Shipping.
This potential can be utilized to increase the number of Indian Flagged Vessels. The
port office has been requested to give preference for Indian Register of Shipping
vessels.
REFERENCE
[1] http://www.irclass.org/files/classification_notes/TA-Mass-Production-System-
April-2000.pdf
[2] http://www.aadnc-aandc.gc.ca/eng/1100100032463/1100100032464
[3] http://www.irs.gov/Businesses/Corporations/FATCA-Registration
[4] http://www.crisil.com/Ratings/Commentary/CommentaryDocs/shipping_deepali.
pdf
[5] http://www.irclass.org
[6] http://en.wikipedia.org/wiki/Indian_Register_of_Shipping
[7] http://mospi.nic.in/Mospi_New/upload/SYB2014/index1.html
[8] http://mospi.nic.in/Mospi_New/upload/SYB2014/ch22.html
[9] Qayssar Saeed Masikh, Dr. Mohammad Tariq and Er. Prabhat Kumar Sinha,
Analysis of A Thin and Thick Walled Pressure Vessel For Different Materials,
International Journal of Mechanical Engineering and Technology, 5(10), 2014,
pp. 9 - 19.
[10] Pallavi J.Pudke, Dr. S.B. Rane and Mr. Yashwant T. Naik, Design and Analysis
Of Saddle Support: A Case Study In Vessel Design and Consulting Industry,
International Journal of Mechanical Engineering and Technology, 4(5), 2013,
pp. 139 - 149.
[11] Mr. Mukund Kavekar, Mr. Vinayak H.Khatawate and Mr. Gajendra V. Patil,
Weight Reduction of Pressure Vessel Using FRP Composite Material,
International Journal of Mechanical Engineering and Technology, 4(4), 2013,
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