WORLD

SHIPPING

SUBMITTED BY:
VRAJESHWARI YADAV
(217370592063)
DHARATI MODI (217370592058)
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About 90% of world trade is carried by the

international shipping industry. Without shipping,
the import/export of affordable food and goods
would not be possible - half the world would starve
and the other half would freeze!
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  Shipping is regulated globally by the
International Maritime Organization (IMO).
 There are around 58,000 merchant ships trading
internationally, with some 17,800 ships were Ro-
Ro/general cargo ships as of January 1, 2022.
 The world fleet is registered in over 150 nations,

INTRODUCTIO and manned by over a million seafarers of

virtually every nationality.

N  2021 saw widespread disruptions in the industry

globally, characterized by:
 Serious port congestion
 Extreme rate hikes on all trades
 Increased blank sailings
 Shortage of ships and containers

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WORLD
SEABORNE TRADE
 The International Maritime Organization (IMO)
is the United Nations system’s regulatory
agency for the maritime sector.
 Its global mandate is “Safe, secure and efficient
shipping on clean oceans”.
 International seaborne trade performed better
than the world economy, with volumes
increasing at 3.2 per cent in 2021.

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WORLD MAJOR SEA PORTS

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LEADING
CONTAINER
SHIPPING
COMPANIES

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  Cyclic: a particular type of economic cycle.
These cycles correct markets when supply and
demand are out of balance. Shipping markets
are driven by freight rates, which can move up,

SHIPPING
move down or remain unchanged.
 Highly capital intensive: Apart from the ship

INDUSTRIES breaking business, other business segments in

shipping mainly freight & shipbuilding are

FEATURES highly capital intensive. It requires huge

investments & in turn has high gestation
periods thus pushing break-even time to years.
This capital-intensive nature of the shipping
business acts as a barrier to entry & in a way
protects those already in the business.

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  Approximately, 95 percent of the country's
trade by volume (70 percent in terms of value)
is moved by sea.

INDIAN  There are two geographical factors that put the

Indian maritime sector at an advantageous

SHIPPING position – the vast coastline of 7,500 km with a

coastline close to 7517 km and 12 major & 187

INDUSTRY minor ports and the strategic location along

most major shipping highways.
 Indian tonnage currently stands at 13 million
GT (2021) while the number of vessels
increased to 1463 at the end of 2021.

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India is the sixteenth largest

maritime country in the world,
with a coastline of about 7,517
km.

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INDIAN SHIPPING INDUSTRY (CONT.)
 12 major and 200 non-major/intermediate ports
 Jawaharlal Nehru Port Trust is the largest major port in India, while
Mudra is the largest private port
 World's top 5 ship recycling countries and holds 30% share in the global
ship recycling market
 95% of the country’s trade by volume and 68% by value is moved
through Maritime Transport
 The overall installed capacity of the major ports in India has increased
over 76% to reach 1,561 MTPA in Mar 2021, vis-a-vis 872 MTPA in
March 2014
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TOTAL GOODS TRANSPORTED
India
Waterways; 9%

Road
Rain; 27% Rain
Waterways

Road; 64%

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  National waterways

GROWTH  Sagarmala initiative

 Container Manufacturing
DRIVERS IN  Cruise shipping

INDIAN  Specialist terminal based ports

INDUSTRY  Rising trade

 Atmanirbhar Bharat Abhiyaan - Self
Reliant India

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CHALLENGES
 Onerous Tax Regime
 The multiplicity of Regulations – costly
FACED BY affair
 Declining Share of Indian Shipping
SHIPPING Tonnage in India’s Overseas Trade

INDUSTRY  Manpower Shortage

 Supply Chain Challenge

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DRIVERS IN  Demographic Drivers

PORT  Technological Drivers

INDUSTRY  Environmental Drivers

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DEMOGRAPHIC DRIVERS:
POPULATION GROWTH

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DEMOGRAPHIC DRIVERS:
URBANIZATION

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DEMOGRAPHIC DRIVERS: POLITICS

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TECHNOLOGICAL DRIVERS

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ENVIRONMENTAL DRIVERS: GLOBAL
TEMPRATURE

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  Increased focus on spatial strategy
 Space productivity
 Increased protectionism
 Reshoring of industries

INDUSTRY  Port infrastructure

 Tilt in Asia
TRENDS  Changes in supply and demand
 Impact on trade
 Increased use of technology
 Growing opportunity in niche markets
 Use of alternative trade routes

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CONCLUSION
 India appears to be among the major economies
in the world.
 India will require a vibrant and strong maritime
industry for economic & strategic reasons.
 India is on the cusp of major maritime revolution
which will play out over the next couple of
years.

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THANK YOU…

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