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TECHNOLOGY ROADMAP: TRANSPORTATION
2.0
INDIAN vs. GLOBAL
TRENDS: CHALLENGES
AND OPPORTUNITIES
Shipping is a complex and volatile industry. The demand in the shipping market since 2002. This
industry is cyclical by nature and has experienced has resulted in unprecedented contracting of
many peaks and troughs in the past. World new tonnage, boosting the order book for new
economic growth and the demand for seaborne vessels’ construction by as much as 500%. With
transport are closely linked. A general observation the financial crisis of 2008, the world trade started
is that during periods of low world Gross shrinking dramatically. The vessels that were
Domestic Product (GDP) growth, the volume of ordered during the market boom are now being
seaborne trade shrinks and vice-versa. This volatility delivered, adding to the current tonnage. Naturally
in the shipping industry creates a potential for high this created a substantial oversupply of tonnage
profits, but also for considerable losses as shown in in the market, which inevitably led to depressed
fig 2.1 and 2.2 below. freight rates and weak markets in general.
2.1 GLOBAL TRENDS The current reduced level of world economic
Globalisation and rapid development of Asian growth, coinciding with overcapacity in the global
economies has led to a great deal of added fleet, has led to the shipping industry currently
FIG 2.1: THE OECD INDUSTRIAL PRODUCTION INDEX AND INDICES FOR WORLD GDP, MERCHANDISE TRADE AND
Figure 1.1.1 The OECD Industrial Production Index and indices for world GDP, merchandise trade
SEABORNE SHIPMENTS (1975-2014) (BASE YEAR 1990 =100); [1]
and seaborne shipments (1975-2014) (base year 1990 =100); [1]
350
300
250
200
150
100
50
1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
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