The document discusses container shipping in India. It provides background on India's shipping industry and ports. There are 12 major ports and 200 non-major ports in India. Container shipping involves various players that collaborate to transport cargo from origin to destination. Recent issues like the global container shortage are impacting supply chains and increasing freight costs. The government has various initiatives to develop ports and waterways to improve logistics. The document also discusses the prominent Jawaharlal Nehru Port as an example and provides exhibits like statistics and diagrams.

1. MS5330: SUPPLY CHAIN MANAGEMENT
Transportation Group Assignment-1
MS21A010 - Boya Lokesh
MS21A018 - Gowri Lekshmi S J
MS21A023 - J S L N Ranganath
MS21A025 - Jagvir Singh Jaglan
MS21A044 - Kandati Pavan Kumar Reddy
MS21A049 - Rajana Teja
MS21A073 - B Vijay Kumar
Submitted by Group 3:
MS21A010 - Boya Lokesh
MS21A018 - Gowri Lekshmi S J
MS21A023 - J S L N Ranganath
MS21A025 - Jagvir Singh Jaglan
MS21A044 - Kandati Pavan Kumar Reddy

2. 1
CONTAINER SHIPPING IN INDIA
INTRODUCTION ABOUT SHIPPING INDUSTRY IN INDIA:
With a coastline of 7,517 km, India is advantageously placed on the world's shipping routes. India has
200 non-major/intermediate ports and 12 major ports. In terms of value, maritime transport handles over
70% of India's trade. The largest significant port in India is the Jawaharlal Nehru Port Trust, whereas
Mudra is the largest private port. Ports, shipping, shipbuilding, and ship repair, and inland water
transport systems are all part of India's maritime sector. Various fiscal and non-fiscal incentives have
also been provided by the government for companies that develop, maintain, and operate ports, inland
waterways, and shipbuilding in India.
According to the Ministry of Shipping, maritime transport accounts for around 95% of India's volume and
70% of its value. Shipping is a worldwide industry whose success is inextricably related to the status of
the global economy. As a result, any change in the global economy has an impact on the shipping
business. The International Maritime Organization's(IMO) laws and regulations also apply to the
shipping industry.
CONTAINER SHIPPING SUPPLY CHAIN:
The container shipping supply chain (CSSC) is made up of a number of key players, including the
shipper, freight forwarder, shipping line, port/terminal operator, inland carrier, and intermodal
terminal/depot operator, all of whom collaborate to transport containerized cargo by various transport
vehicles from point of origin to point of destination throughout the entire end-to-end supply chain.
Shipment arrangement; Container management; Seaborne transport; Port and terminal management;
Inland transport & depot management are the five value-adding segments of the CSSC.Freight logistics,
container logistics, vessel logistics, port/terminal logistics, and inland transport logistics are the five
value-adding sectors from the standpoint of logistics management.
Freight logistics - specializes in the storage, routing, and scheduling of cargo and containerized
shipments.
Container logistics - focuses on container fleet planning and control in order to meet customer needs
and maximize fleet utilization.
Vessel logistics - focuses on the planning and control of the containership fleet in order to offer
shippers with reliable shipping services while maximizing profit or lowering logistical expenses.
Port and terminal logistics - When processing and storing containers at port, the focus is on
providing efficient services to vessels, railways, and external vehicles.
Inland transport logistics - focuses on the design and supervision of inland vehicle fleets and facilities
for container transportation, storage, and maintenance in the inland region.
Shipping Sector Analysis Report :
● India is the sixteenth largest maritime country in the world, with a coastline of about 7,517 km.
● India has 12 major ports (6 on the eastern coast and 6 on the western coast) and 200 non major
ports.

3. 2
● Major ports under Government control whereas non major ports under respective state’s
Government Maritime Board (GMB).
● Of 200 non major ports, 44 are functional and strategically located on the world’s shipping routes.
● In 2015, GOI announced the Sagarmala Program, an initiative to reduce logistics cost for
international and domestic trade with minimal infrastructure investment.
● The Government also initiated the National Maritime Development Program, an initiative to
develop the maritime sector with a planned outlay of US$ 11.8 billion.
● The Government has allowed FDI of up to 100% under the automatic route for projects related to
the construction and maintenance of ports and harbors and a 10 year tax holiday to enterprises
engaged in ports.
PORTERS FIVE FORCES (Indian shipping industry)
● Barriers to entry: High, as it requires high capital investment, adequate cash flows, and technical
expertise and know-how.
● Bargaining power of suppliers: Low, as there are only a few shipping companies that dominate
the market.
● Bargaining power of customers: High, as customers are from all over the world. Switching
costs are also low as customers can switch to another company from any part of the world.
● Competition: High, as shipping companies not only face competition from domestic players but
from international players as well.
● Threat of Substitutes: Moderate to High for solid cargo. Customers can switch to substitutes
such as airlines, trucks or goods trains if there is a change in quality of service, increase in freight
rates and transit time.
Market Size:
● India’s key ports had a capacity of 1,561 million tonnes per annum (MTPA) in FY21.
● In FY22 (until February) 2022, all key ports in India handled 650.52 million tonnes (MT) of
cargo traffic.
● India's merchandise exports in FY22 were at US$ 417.8 billion, up 40% from the previous
year. and grew by 43.05% YoY to reach US$ 33.65 billion.
SWOT Analysis

4. 3
Strength:
● India has access to 2 major shipping trade
routes
● More than 7500 km of coastlines and island
territories ,as well as ports.
● Long history of sea trade with continents
Weakness
● Lack of focus & investment in port
development,Bureaucratic red
tape,environmental policies and local political
and regional issues.
● Lack of private players,
Opportunities:
● Development of massive shipping terminals in
mumbai and chennai
● Acquisitions of shipping by indian companies
● Large FDI flow into port sector, increased
exports tend to focus on development of ports
Threats:
● Major port infrastructure development in
neighboring countries will overshadow their
own southern ports.
● Tax and policy change on iron and other ore
exports will reduce bulk haulage at major
ports.
Investments/Developments : Shipping Sector
● Indian ports received cumulative FDI inflow worth US$ 1.63 billion between April 2000 and June
2021.
● JNPT Special Economic Zone (SEZ) became the first operational port-based multi-product SEZ
in India.
● The Competition Commission of India (CCI) approved Adani Ports and Special Economic Zones'
proposed acquisition of 10.40% equity investment in Gangavaram Port in September 2021.
● In July 2021, India’s merchandise exports reached US$ 95 billion in the three months ended
June.
● In March 2021, Adani Ports announced a partnership with John Keells Holdings and Sri Lanka
Ports Authority to develop and operate the West Container Terminal of the Colombo Port in Sri
Lanka for 35 years.
● In November 2020, JSW Infrastructure completed the acquisition of Chettinad Group’s port
business for ~Rs 1,000 crore.
● In July 2020, Adani Ports and Special Economic Zone (SEZ) Ltd, launched an offshore bond
offering, raising ~US$ 750 million.
● In January 2020, DP World launched a new rail service between Kochi and Bangalore to lower
costs and reduce transit time between the two cities by >40%.
● India has plans to invest US$ 82 billion in port projects by 2035.
Government Initiatives
● Collaboration on shipbuilding and inland waterways development with Russia.
● New Radars and Vessel Traffic Management System of Cochin Port Trust inaugurated in
November 2021,with simultaneous launching of five vessels at Cochin Shipyard Limited (CSL).
● The Draft Indian Ports Bill 2021, circulated in July 2021, aims to centralize the administration of
minor ports that are currently managed by state governments.
● The Inland Vessels Bill 2021 approved by the Lok Sabha in July 2021, the bill attempts to include
a single legislation for the country. The registration certificate issued under the new law will be
valid throughout the country and state approvals will not be necessary. The bill also establishes a
single database for recording vessel and crew information on an Internet portal.

5. 4
● Marine Aids to Navigation Bill 2021 passed by the Parliament in July 2021, incorporating global
best practices, technological developments and India's international obligations in this field.
● MOU signed to develop seaplane services in India in June 2021
● India is expected to begin full operations in Iran’s Chabahar Port by the end of May 2021. India is
building two terminals at the port and will operate them for 10 years
● The key ports are expected to deliver seven projects worth more than Rs. 2,000 crore on a
public-private partnership basis in FY22.
● The Finance Minister proposed to double the ship recycling capacity of ~4.5 million light
displacement tonnes (LDT) by 2024; this is expected to generate an additional ~1.5 lakh
employment opportunities in India.
● In February 2021, the Major Port Authorities Bill, 2020 was passed, the bill aims to decentralize
decision-making and reinforce excellence in major port governance.
Road Ahead
● Increasing investment and cargo traffic point for improvement of the Indian ports sector.
● Providers of services such as operation and maintenance (O&M), pilotage and harboring and
marine assets such as barges and dredges are benefiting from these investments.
● The capacity addition at ports is expected to grow at a CAGR of 5-6% till 2022, thereby adding
275-325 MT of capacity.
● Domestic waterways have been found to be a cost-effective and environmentally sustainable
mode of freight transportation. The government aims to operationalise 23 waterways by 2030.
● As part of the Sagarmala project, more than 574 projects worth Rs. 6 lakh crore (US$ 82 billion)
have been planned for implementation between 2015 and 2035.
● In Maritime India Summit 2021, the Ministry of Ports, Shipping and Waterways identified a total of
400 projects worth Rs. 2.25 lakh crore (US$ 31 billion) investment potential.
● India’s cargo traffic handled by ports is expected to reach 1,695 million metric tonnes by 2021-22
according to a report by the National Transport Development Policy Committee.
CASE OF JNPT AS AN EXAMPLE :
Jawaharlal Nehru Port Authority (JNPA) at Navi Mumbai is the premier container handling port in India,
handling 50% of the total containerized cargo volume, across the major ports of India. Commissioned
on 26 th May 1989, JNPA is connected to over 200 ports in the world and is ranked 33rd in the list of
top 100 Container Ports globally.It operates 05 container terminals: The Jawaharlal Nehru Port
Container Terminal (JNPCT), the Nhava Sheva International Container Terminal (NSICT), the
Gateway Terminals India Pvt. Ltd. (GTIPL), Nhava Sheva International Gateway Terminal (NSIGT),
and the newly commissioned Bharat Mumbai Container Terminals Private Limited (BMCT). The port
has a shallow Water Berth for general cargo and a Liquid Cargo Terminal which is managed by BPCL-
IOCL consortium. It has developed a 4th Container Terminal and a multi-product SEZ to attract
international capital and global giants in manufacturing.
Brief on Container Shortage Crisis:
Ongoing major container shortage is impacting international trade.
● Pre-COVID:Ships unloaded on arrival at ports and loaded new ones.Unloaded containers
turnaround was efficient as they moved to their destination via trucks immediately.

6. 5
● Post Pandemic:There was delay at every level,lack of space on ships for empty containers ,boxes
piled up at container depots, ports and transhipment hubs like Singapore and created shortages
in countries like China and India.
● Supply line:broke due to shortage of workers, missing truck drivers, contraction of the fleet on
container ships and reduction in slot availability on container ships.
● Currently, a large number of empty containers are stranded in inland depots, ports and adjoining
empty patches of land and at transhipment hubs in the US and Europe and others across Europe
waiting for vessels.Shipping companies find moving from east to west more lucrative.
Making of The Crisis
● Crisis first emerged with people buying goods from e-commerce platforms during the pandemic.
The massive fiscal stimulus also buoyed consumption.
● Spending shifted from services to goods.Spurt in demand caught importers and logistics service
providers by surprise, as most goods are shipped from China & eastern nations, in containers.
● Shortage of containers became acute in recent months when retailers in the US and other
western countries started stocking up ahead of the holiday season. The pressure on the logistics
networks rose when manufacturers advanced their import orders for raw materials and critical
inputs to avoid disruptions to production cycles.
● Shortage of workers at ports and logistics networks ,caused the piling up of containers, both
loaded and empty, at ports, warehouses and depots. waiting for several days to enter ports.
● Workforce at every level contracted when demand collapsed following the first wave of the
pandemic. All facilities continue to grapple with labor shortages, slowing the entire chain of
processes from unloading of containers, their movement to depots and warehouses and onward
journey. Therefore, congestion continues at almost all large ports.
● Congestion led to idling of vessels and exacerbated the shortage of ships that can go into the
sea. The shortage of truck drivers for long haul trips had reached alarming proportions, and was
described as the weakest link in the supply chain.
Global Impact:
The lack of availability of containers and faster than expected recovery in international trade has pushed
up freight rates significantly. It has led to freight rates rising by over 300%.
Impact on India: Indian exporters are facing major delays in their shipments and consequent liquidity
issues waiting for payment of exported goods.
Steps Taken to reduce the Shortage
International level : Container stock augmentation by world’s largest container shipping companies
Hapag-Lloyd and CMA CGM. Contracts signed to build new container vessels.
National Level: The Central Board of Indirect Taxes and Customs directed expeditious disposal of
unclaimed, uncleared, and confiscated goods holding up containers,to ease availability of containers for
exporters.
Suggested Way Forward
National Level Government can regulate the export of empty containers and also notify a freight
support scheme for all exports till the end of fiscal when freight rates may normalize as requested by the
Federation of Indian Export Organisations.Government can also push back on moves by shipping lines
to offer priority bookings at higher rates, rather than taking bookings on a first come first serve basis.
International Levels First of all, the flow of empty containers back to exporting countries needs to be
normalized. Some relief came in February when factories across China were shut down for the Chinese
New Year celebration, slowing the flow of goods from that country.A lull in demand following the
Christmas shopping across the US and Europe is also expected to ease congestion at the ports.

7. 6
EXHIBITS(TABLES,GRAPHS & FIGURES) :
Location & Topography - Major Ports :
TRAFFIC HANDLED AT MAJOR PORTS :

8. 7
TRAFFIC HANDLED AT MAJOR PORTS(PRODUCT WISE) :

9. 8
Top 10 Ports in Asia :
Connecting Major Ports in India with other Ports around the world :

10. 9
PORT RECEPTION FACILITY :

11. 10
BUSIEST CONTAINER PORTS :
TOP 15 EXPORTERS :

12. 11
TOP 15 IMPORTERS :
HIGHLIGHTS OF JNPT

13. 12

14. 13
REFERENCES :
https://www.ibef.org/industry/ports-india-shipping
https://www.mdpi.com/2305-6290/5/2/41/htm
http://ipa.nic.in/index.cshtml
https://www.equitymaster.com/research-it/sector-info/ship/Shipping-Sector-Analysis-Report.asp
https://jnport.gov.in/hstory