Page 167 - Technology Roadmap Transportation

TECHNOLOGY ROADMAP: TRANSPORTATION

(b) India’s merchandise trade was in the region However, the percentage of this imported
of $757 billion in the year 2015 (Ministry coal carried by Indian ships is barely 5~6%.
of Commerce & Industry, Govt. of India). Huge fluctuations in freight rates are also
UNCTAD study states that the freight cost one of the factors responsible for lack of
of the countries such as that of India is about investment in this sector. The Baltic Dry Index
7.4% of the value of merchandise trade. which provides an assessment of freight rates
On this basis, Indian trade paid a freight of for moving the major raw materials like coal,
approximately $56 billion in the year 2015. iron ore and food grains by Sea was as high
However, due to non-availability of adequate as 2000 on Oct 7, 2012. It slumped to a
Indian tonnage, about 90% of this freight bill low of 647 signalling the start of crisis in dry
was passed onto foreign shipping companies. bulk market, fig 2.3 (UNCTAD, Review of
The amount of foreign exchange being lost Maritime Transport, 2015). It fell to a historic
by the country due to this imbalance is low of 298 points on February 4, 2016
phenomenal. (Lloyd’s List). Unless the Indian ship owners
are assured of continuous and unstinted
(c) Amongst various cargo categories, crude oil support by the trade, they would remain
continues to be the most vital commodity reluctant to buy dedicated tonnage to serve
required by India. Out of 223.242 MMT of Indian bulk trade requirements, as this entails
crude processed in refineries in 2014-15, the risk and huge capital investments.
domestic production was only 37.461 MMT
[3] implying imports were over 84% of the (e) According to statistics available with the
country’s total crude oil requirements. Oil Shipping Corporation of India Ltd as on
tankers constitute over 61% of total Indian 01.02.2016, the share of Indian shipping
shipping fleet as against international average companies is alarmingly low in container
of tankers constituting one-third composition trade as well, at less than 4% of the total
of the fleet. container trade of India. With the economy
booming and recent opening up of retail
(d) In bulk trade, the scenario is no different. As sector to foreign players, the FMCG sector is
one of the fastest growing economies, India’s likely to get a big boost. Despite such a good
requirement for imported coal (both thermal market, for a nation with over 1.2 billion
coal and coking coal) has increased manifold. population, barring the national shipping

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Fig.1.2.1: Baltic Exchange Dry Index, 2012-2015 (Index base year 1985=1000 points) [4]
FIG.2.3: BALTIC EXCHANGE DRY INDEX, 2012-2015 (INDEX BASE YEAR 1985=1000 POINTS)[4]

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