Fierce competition and rampant freight erosion saw the emergence of negotiation of freight contracts between export houses & shipping agents on FOB terms, whereby,long term contracts are negotiated with freight levels being kept stable. Globalcontracts between shipping Lines and Global Supply Chain MNC with considerablevolumes started getting finalized outside India on long term basis and thus saw aemergence of shipping lines identifying it’s customers as Tender Accounts, GlobalKey Accounts, Global Development key accounts etc. basis the size, volume,potential of the companies. Cross trade / third country negotiation also started toplay a greater role in today’s overall shipping negotiation wherein export volumes ExIndia are negotiated with the shipping lines in a third country without India & countryof destination being involved in the negotiations.Shipping companies in India & Globally have now started to leverage volumes fromcustomers vide providing shipping solutions with customer service initiatives such asE Com Solutions, Web B/l Facility, 24 x 7 customer service response, pushinformation, which has resulted in overall shipping becoming very service orientedrather than just being a normal freight negotiation.
India Container Traffic:
Indian economy is on a consistent growth trend & India’s EXIM trade increasedsubstantially. Indian economy will be at $1 trillion mark by end 2008 and real GDPgrowth is second highest in the world (Next to China). India’s major development thathas affected Shipping industry:
1] India has become a major source for Auto & Auto Components,Chemicals, textiles, leather goods, refined petroleum products &pharmaceuticals. This promises tremendous increase in overall export tradeex India in coming years.
India’s favorable Forex reserves (approx. $250 Billion by Dec 2007) hasresulted into considerable freedom for imports of raw material & otherproducts.
3] Indian Economy is growing consistently since 2001 with an average GDP growth of 8-9% p.a. Trade turnover has grown by 26% (2002-06) compared to Exports by 23% (2002-06)& imports by 26% (2002-06). To note here,
India’s share in Global trade accountfor less than 1%, thereby, indicating tremendous growth prospects...4] Indian shipping industry is ranked 15
in the world & 95% of volume iscatered by maritime route
5] Indian ports handled more than 500 Million tonnes in 2005-06 & are expected tohandle 920 million tones by 2013-14. Major
ports comprising of JNPT, Mundra,Pipavav, Chennai, Cochin, Kolkatta, and Haldia & Tuticurin handled 75% of the volume
.Important to note is that India’s container traffic grew at 14% p.a. from 2000-05. Fareast, UK & US East Coast comprise 85% of overseas container Trade. India Container Traffic is growing faster than Global traffic during part 5 Years.
JNPT remains thebiggest port handling approx 56% of the overall container volume followedby Chennai at 14.5% share
North & west India generate 60% of the container Traffic in India.
Principal Exports Ex India: Textiles, Leather & Leather goods, Finished Gems & Jewelries, Chemicals, Engineering goods & iron & steel.Major Export destinations: USA, UK, China, Japan & EU apart from MEA & Africa