The Indian Coal Trade is Expected to Grow at a CAGR of 8.52% Till 2014 Contributing to India's Shipping Industry.DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c55796) has announced the addition of Indian Shipping Industry to their offering. The report on this industry takes you through a journey right from its evolution to the latest happenings, suitably accompanied by up-to-date statistics and in-depth analysis. Segments covered are Dry Bulk, Tankers and Container Ships. Key areas covered are: * Key Statistics * Fleet Position (World & India) * Vessel Age Profile (World & India) * Segment-wise projected cargo movement * Segment-wise Freight rate Noun 1. freight rate - the charge for transporting something by common carrier; "we pay the freight"; "the freight rate is usually cheaper" freightage, freight trends * Segment-wise Orderbook Position * World & Indian tonnage growth trend * Share of Indian tonnage in India's overseas cargo Chapter Outline: Chapter 1 Introduction Chapter 2 Fleet Description Chapter 3 Shipping Industry Overview Chapter 4 Dry Bulk Chapter 5 Wet Bulk Chapter 6 Container Ships Chapter 7 Challenges faced by Indian Shipping Industry Chapter 8 Cost Dynamics of the Shipping Industry Chapter 9 Company Profile Annexure 1 Vessel Description 2 Tonnage Tax Scheme 3 IMO Phase-out Time table for single hull tankers Shipping Terminology Abbreviations Indian Shipping Industry.... exploring the 'unchartered' waters Shipping Industry is probably the most cyclic of all industries. Being a global industry, it is affected by a whole gamut See color gamut. gamut - The gamut of a monitor is the set of colours it can display. There are some colours which can't be made up of a mixture of red, green and blue phosphor emissions and so can't be displayed by any monitor. of factors which range from world economic condition, political events, natural disasters to age of existing vessels, new vessel delivery schedules, availability of ship building slots with ship yards, government regulations etc. Besides being characterized by choppy chop·py 1 adj. chop·pi·er, chop·pi·est Having many small waves; rough: choppy seas. [From chop1. revenue stream, the shipping industry is also highly capital intensive. A single ship can cost anything between US $20 Mn to US $300 Mn. Commoditized product coupled with the fact that globally there are a large number of players in this segment; no single company has significant pricing power Pricing Power An economic term referring to the effect that a change in a firm's product price has on the quantity demanded of that product. Pricing power ties in with the "Price Elasticity of Demand. . In 2005, the world shipping industry garnered a freight income amounting to US $380 Bn. The total world shipping tonnage, as on 1st January 2006, stood at 642.67 Mn GT[Dry Bulk (27.75%), Wet Bulk (27.15%), Containerships(14.98%), LNG/LPG (4.19%), Others(25.94%)].The Indian shipping industry earned a freight income of US $2.2 Bn in FY 2006 and the Indian tonnage, as on 1st July 2006, stood at 8.57 Mn GT [Dry Bulk (30.60%), Wet Bulk(55.70%), LPG LPG: see liquefied petroleum gas. 1. LPG - Linguaggio Procedure Grafiche (Italian for "Graphical Procedures Language"). dott. Gabriele Selmi. Roughly a cross between Fortran and APL, with graphical-oriented extensions and several peculiarities. carriers(3.30%), Containerships(1.10%), others(9.30%)]. The shipping industry is interestingly poised at the moment. After seeing dizzying high freight rates in 2004 and a strong market in 2005 & 2006, 'what lies ahead?' is not an easy question to answer. The prospects of the shipping industry will depend on the trade volumes growth in dry bulk, wet bulk and container ship segments, in addition to tonnage addition/deletion balance in these respective segments. Dry bulk cargo That which is generally shipped in volume where the transportation conveyance is the only external container; such as liquids, ore, or grain. constitutes of two main commodities: iron ore and coal. Iron ore trade is largely driven by the demands of the Chinese steel industry. Chinese iron ore demand remained strong in CY 2006, however, going forward whether there will be any significant slowing down in the Chinese steel industry still remains to be seen. As 83% of India's iron ore exports are to China, the trade volumes arising out of India will also depend, to some extent, on the prospects of Chinese steel industry. As per INSA INSA Institut National des Sciences Appliquées (French) INSA Indian National Science Academy INSA Indian National Shipowners' Association INSA Instituto Nacional de Saúde Ricardo Jorge (Portugal) Annual Report 2005-06, the iron ore trade is expected to grow at a CAGR CAGR See: Compound Annual Growth Rate of 3.4% till 2014 to reach 131.50 Mn tonnes (97.31 Mn tonnes in 2005). As the Asian countries Noun 1. Asian country - any one of the nations occupying the Asian continent Asian nation country, land, state - the territory occupied by a nation; "he returned to the land of his birth"; "he visited several European countries" are putting up new coal based power stations; the demand for coal is expected to remain steady. India's coal demand is expected to increase because of the capacity additions in the power, cement and steel sector. The Indian coal trade is expected to grow at a CAGR of 8.52% till 2014 to reach 135.9 Mn tonnes (65.12 Mn tonnes in 2005). The age of dry bulk carriers is high with more than 30% of the total dry bulk gross tonnage being over above 20 years. In case of India, more than 60% of the dry bulk gross tonnage is over 20 years of age. Going ahead, CARE feels that the freight rates in this segment will be determined more by the new tonnage additions-scrapping balance than by dry cargo volumes growth. This winter, the wet bulk market has been suppressed due to decreased movement of crude oil. This was attributed to stocking of oil by developed countries (when the oil prices hit above $70/barrel) before the winter began. However, barring such intermittent phenomenon, the wet bulk market is expected to remain buoyant. India has been seeing an increase in its crude oil consumption. As per INSA, India's Petroleum-Oil-Lubricants trade is expected to grow at a CAGR of 4.47% till 2014 to reach 290 Mn tonnes (126.44 Mn tonnes in 2005). The world tanker fleet is relatively young as it is being replenished with new double hulled A double hull is a ship hull design and construction method where the bottom and sides of the ship have two complete layers of watertight hull surface: one outer layer forming the normal hull of the ship, and a second inner hull which is somewhat further into the ship, perhaps a tankers. 15.7% of the world tanker gross tonnage is over 20 years while in case of India 23.3% of crude tanker tonnage and 51.86% of product tanker tonnage are over 20 years of age. The Indian players will need to replenish re·plen·ish v. re·plen·ished, re·plen·ish·ing, re·plen·ish·es v.tr. 1. To fill or make complete again; add a new stock or supply to: replenish the larder. 2. their fleets with tankers which are compatible with International Maritime Organization International Maritime Organization (IMO), specialized agency of the United Nations established in 1948, with headquarters in London and 158 member nations. IMO is one of the smallest of the UN agencies. regulations (single hull vessel need to be phased out by 2010 unless covered by Conditional Assessment Scheme). With 2-2.5 times relationship with GDP GDP (guanosine diphosphate): see guanine. growth rate, the container trade volumes will continue to grow exponentially. The growth will arise both due to increase in the volumes of the currently containerized con·tain·er·ize v.tr. con·tain·er·ized, con·tain·er·iz·ing, con·tain·er·iz·es 1. To package (cargo) in large standardized containers for efficient shipping and handling. 2. commodities and containerization con·tain·er·ize v.tr. con·tain·er·ized, con·tain·er·iz·ing, con·tain·er·iz·es 1. To package (cargo) in large standardized containers for efficient shipping and handling. 2. of newer commodities. As per INSA, the container traffic at the Indian major ports is expected to grow at a remarkable CAGR of 15.57% till 2014 to reach 15.1 Mn tonnes (4.74 Mn tonnes in 2005). With 13.7% of world container fleet over 20 years of age, not significant scraping is expected. The cargo growth in this segment is expected to absorb the new tonnage additions, thus keeping the freight rates buoyant. However, Indian shipping companies have marginal presence in the container ship segment. This is because containership segment is liner business and hence requires huge investments in infrastructure and logistics. As a result, the majority of the Indian containership cargo is being carried by foreign shipping companies. As per industry estimates, it is believed that the Indian shipping industry will need to spend about US $4 Bn on fleet renewal (all segments included) in the next five years. However, the Indian shipping companies will be encouraged to add tonnage under the Indian flag only if it is provided with an internationally comparable fiscal and legal environment. Thus, for the Indian shipping industry to explore the opportunities ahead, it is necessary that the government plays a facilitative role. Companies Mentioned: * Shipping Corp.of India Ltd * GESCO GESCO Gujranwala Electric Power Company (Pakistan) Ltd * Mercator Lines Ltd * Essar Shipping Essar Shipping Ltd. is an Indian shipping corporation with a focus on transportation solutions for the global energy business. The company's fleet accounts for almost 14% of India's shipping fleet. Essar Shipping Ltd. Ltd For more information visit http://www.researchandmarkets.com/reports/c55796 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion