Indian shipping tonnage on the decline

Indian shipping tonnage on the decline Shipping tonnage in India has declined over the past year, a result of the scrapping of older ships and the flagging of Indian-controlled vessels in other countries, according to a report this week in the Economic Times.
   Overall tonnage of Indian-flagged vessels has decreased from its peak of 9 million gross tons to 8.84 million gross tons as of June 1. The report said that many Indian carriers, among them Essar Shipping and the Shipping Corp. of India, have retired and scrapped older vessels in their fleet in anticipation of the delivery of newer vessels. But those orders will take a couple years to complete.
   Additionally, some carriers have begun registering vessels under flags of convenience, like with the Marshall Islands, to avoid the restrictive maritime policies of Indian-flagged vessels. Since 2000, the percentage of Indian ocean trade handled by Indian-flagged ships has declined from 40 percent to 11.8 percent, M.K. Banger, a marine consultant for the Maharashtra Maritime Board, wrote in the newspaper.
   Also hindering development of the industry is the high cost of financing. A global survey by London consulting firm Moore Stephens found that ship financing, given the current state of global credit markets, was a significant worry for ship owners looking to expand their fleets. The worry over financing even leapt ahead of vessel operating costs, which was the chief concern the last time the survey was undertaken.