Question

State the problem faced by Indian shipping

Answer 1

The major problem shipping industry is facing now is the demand supply gap. The supply is much more than demand. The ships are growing bigger without increase in demand. Deep pocket shipping companies are replacing smaller ships with bigger ships to enjoys economies of scale, resulting in supply surplus.

Unless this supply glut is fixed either by vessel scraping or demand increase because of economy improvement shipping industry will continue to be in doldrums.

Answer 2

Answer:

• Indian ports are not well connected with their hinterland.
• Indian ports are not well planned, lack facilities, and are very congested.
• There is heavy pressure on cargo containers.
• The coastal fleet is aging fast, nearly 52%of the tonnage is already due for replacement.
• There is an imbalance in coastal traffic movement as traffic is not equally available in both directions. Hence this makes it necessary for the ship to take the return journey.
• slow handling of the cargo at port and undue port delays inflict heavy losses on shipping companies.

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