Shipping as a revenue generator for the economy

Indian shipping sector plays an important role in India’s economy. In fact, transport, trade and economic development are mutually supportive. The overwhelming share of shipping in the carriage is about 95 per cent in terms of volume and almost two thirds of the total value of international trade. This establishes its predominance and importance as an international mode of transport.

The importance of shipping, over the period, has also increased due to the technological developments in transport. Especially since the advent of containerization culminating in multimodal transportation, majority of the containers move by this mode of transport.

India’s national flagships provide an essential means of transport for the import of crude oil, petroleum products, coal and fertilisers, export of iron ore and exports and imports of various general (liner) cargoes. National shipping also provides for a second line of defence in times of emergency – merchant ships help in transporting supplies, men and material for the navy. Indian shipping makes significant contributions to the foreign exchange earnings of the country as well.

Thus we can see the vital role played by shipping industry in expanding the growth of overseas trade, and is also a direct earner and saver of foreign exchange. Shipping is a valuable invisible export or foreign exchange earner for any country. Without shipping the import and export of goods on the scale necessary for the modern world would not be possible.

Recognising the role of the shipping industry in the context of overall growth strategy, in general, and the promotion of trade and foreign exchange earnings, in particular, the Indian government has made several amendments to the Merchant Shipping Act to encourage the modernisation and diversification of this industry.

Since the 1990s, the government has simplified the regulatory procedures for raising resources from commercial markets and external borrowing in order to facilitate the acquisition of new and second hand vessels at competitive prices. The shipping companies are now allowed to retain sales proceeds of their ships abroad and utilise them for fresh acquisition.

Government approval is no longer required for raising foreign exchange loans from abroad by mortgaging the vessels with the lender. The government has also granted automatic approval for foreign direct investment up to a limit of 74 per cent and non-resident Indians (NRIs) are permitted to invest up to 100 per cent with full repatriation benefits. While challenges exist, with proper regulation India’s potential as an international maritime service provider can be exploited.

The shipping sector is so global in nature that it will continue to be a foreign exchange revenue generator in the years to come.

Shipping-The Bigger Picture

The Yin and Yang philosophy of the Chinese culture indicates that the pros and cons of a certain situation or opportunity are always equal in their own respective magnitudes and effects. The World chose to believe in this ancient philosophy. But the Maritime industry proves that this concept doesn’t apply in every field, at least not in the Maritime field.

If we have a deep look at the pros and cons offered by Maritime sector, you will surely notice that the pros exceed the cons. Shipping has long been the major form of transport, as well as an essential communication link connecting coastal cities, countries and continents. With more than 200 job opportunities, varying from commandeering a ship offshore to managing an entire fleet of ships onshore, the prospects are endless in this field.

Shipping doesn’t purely mean sailing. With about 60,000 ships on the ocean right now, you’ve got to have a certain group of people handling all of the work behind the scenes- the onshore crews. Thus, those not wanting to be at sea are also welcome to be a part of this maritime industry.

The maritime industry is also considered to be one of the most eco-friendly as well as cheapest modes of transport. With the seas and oceans naturally available and no maintenance required for them, it surely proves to be a boon to the industry. Sending a container from Shanghai to Le Havre (France) emits fewer greenhouse gases than the truck that takes the container further on to Lyon, which is in France itself. This fact totally justifies that the maritime services are truly eco-friendly.

Well, all said about the environmental aspects, what good does the Maritime industry do to a national economy?

Going on to the fact of Maritime services being cost saving, here’s another fact to prove it. It's less expensive to ship Scottish cod 10,000 miles away to China to be filleted and then sent back to Scotland than it is to pay Scottish personnel to do the job. Of course, this reflects mostly on the cheapness of Chinese labor, but it also shows the low costs of shipping products. In a recent study, it has been depicted that the shipping industry contributes 2% of the entire Gross Domestic Product (GDP) to the economy of the United Kingdom (UK).

Even after reading all this, the common man is bound to ask,” What good does the Maritime Industry do to me? “

The only fitting reply is that 90% of all the things you buy at the supermarkets and shopping stores arrive via waterways. Those fast food joints that teens throng to, get all their supplies through shipping containers. Let the shipping industry just disappear for a day and watch the havoc it creates.

The maritime industry thus forms the backbone of a country. With the aviation rules stating that anything flammable cannot be allowed on flight, transport of petroleum and its by-products has to take place through the maritime industry.

Ever had a confused face when a seafarer says that, at times, he brings light and energy to a city or township? So what’s this person talking about?

Ships carry coal, natural gas, petroleum, oil, etc that are used to generate electricity and supply power.

So, let me ask you to put on your thinking caps and have a look at the bigger picture about the Maritime Industry. Soak yourself in the advantages of this field and be a part of one of the largest industries of the world.

Green Shipping

Environmental sustainability has become a central issue in the transportation and logistics sector. Unprecedented 21^st century globalization has elicited a growing concern for a greener planet. With growing merchandise trade, shipping is a mode of transport which has proven to be ecologically sustainable and safe with minimal damage to resources, natural or man made.

Maritime shipping is an environmentally friendly and efficient mode of transport. In comparison to land and air traffic, it produces fewer emissions in terms of the load and distance transported, and is substantially more energy-efficient.

Shipping is also the safest mode of transport protecting human, environment and animal life due to strict maritime laws enforceable through International Maritime Organization, (IMO). Chemical pollution, garbage and sewage dumping are all governed by international regulations put into place by the IMO. Prevention of Marine Pollution from Ships (MARPOL) is an important regulation that covers these areas.

Thus shipping can maintain its reputation of being an Eco friendly mode of transportation. Maritime transportation accounts for 90% of cross-border world trade as measured by volume. The nature of water transport and its economies of scale make it the most energy efficient mode since it uses only 7% of all the energy consumed by transport activities, a figure way below its contribution to the mobility of goods.Thus being energy efficient results in shipping having less green house gas and carbon pollution.

The shipping industry worldwide takes pollution prevention seriously. In the case of oil pollution which is a major issue, the IMO has introduced measures that help ensure that the majority of oil tankers are safely built and operated. Care is taken to see that the tankers are constructed to reduce the amount of oil spilled in the event of an accident. In fact Oil spill frequencies and its resulting hazardous impact on the water ecosystems have decreased significantly over the past 20 years, particularly in the last few years, despite overall increases in oil movement

The shipping industry is committed to sustainability and is on a constant watch to include best practices in order to make shipping greener. Green Shipping practices are being adopted in every aspect of the Industry.

Adhering to Corporate Social Responsibility and Client demands, several shipping freight and service-based companies have undertaken greener solutions to maritime trade. Many vessels now use LNG instead of diesel to reduce air emissions; moreover automated engines have been employed in place of manual ones to optimize fuel efficiency. FED-EX and USPR are two such shipping container lines that use alternative fuel fleets to increase fuel productivity.

Ships are now being painted with biocide free paint and hydro-gel coating which not only keeps pollutants out of the sea but also reduces Carbon di oxide emissions, as the paint lessens resistance and saves fuel. Hence, priority for aquatic life is now on a practical agenda. (4)All this and more just goes to show that Shipping as an industry cares for the sector it works in and is focused on a greener future.

Shipping Industry as a career

Maritime industry is flourishing at a very high pace globally. If you’re feeling confined and landlocked and want to explore the deep blue sea, with an extremely lucrative career, then maritime industry is the key. There are plenty of opportunities in the maritime industry that can be explored.  

Through this article we intend to steer a steady course through the waters of maritime-based careers and qualifications.

The maritime industry’s diverse workforce apart from seafaring offers a plethora of careers across the globe. From ship brokers to ship builders, from fleet managers to marine risk managers, from naval architects to shipping analysts, from chief engineers to chief accountant the options are as wide and varied as the seven seas. 

The maritime industry is not just about ships and cargo, it’s predominantly about people and services. If you have drive and talent, and are ready to discover the depth of this industry, both onshore and ashore, maritime is the sector for you.

Talking about the courses available, MBA in Shipping and Port Management is a comprehensive course conducted by some renowned universities and institutions in India. The minimum qualification for entering the industry is 10+2 (Science). Some universities also conduct advance courses in Shipping such as Shipping & Port Management and for that they invite applications from Bachelor’s degree in Engineering/Technology. However some institutes even allow science as a management graduate. Sky is the limit in terms of remuneration in this industry.

Most of the big shipping firms are headquartered outside India, or have significant operations outside India. It means a good performance can lead to exciting roles, globally and a hands on exposure to the various cultures around the globe and these would not be the usual “big economic hubs” like London or New York, but include exotic places like Brazil, Central America, Western Africa and the Middle East. This also means an opportunity to work with, interact and know people from different cultures – exchange notes on food habits, arts, literature and lifestyle.

There is an ocean of opportunities that can be explored.  Come explore this ocean of opportunities.