 The shipping industry transports cargo through designated

sea routes. The global shipping industry is regulated by the

International Maritime Organization.
It can be broadly classified into:

*Wet bulk: This includes the transportation of crude oil and

other petroleum products.

*Dry bulk: It involves the shipment of iron ore and coal.

*Liners: They carry small shipments of general commercial

freight.
 Commercial shipping can be traced back to the Phoenician
merchants who transported goods across the Mediterranean. The
Venetians owned huge merchant fleets from 1300 AD to 1500
AD. The Dutch held the largest shipping fleet from 1600 AD to
1650 AD. Till the nineteenth century, the shipping industry was
dominated by merchants. The common freight carrier service
started in 1818 with the launch of ‘James Monroe.’

 The shipping industry boomed after the opening of the Suez

Canal (1869), which facilitated faster trade between Europe and
Asia. In 1960, the first nuclear powered cargo and passenger
ship ‘Savannah’ was launched. From the 1970s to the 1980s, the
container shipping sector grew exponentially. The industry
continued its growth, especially in Asia, with Hong Kong
inaugurating the world’s largest container port in 1989.
 The top shipping company of the world is APM
Maersk, with a TEU capacity of 2,031,886. It has a
market share of 15.50%. Other major players of the
industry are Mediterranean Shipping Company and
CMA CGM Group, with TEU capacities of 1,469,865
and 988,141, respectively. The top three players
collectively own 1,342 container ships
 The shipping industry is considered to be a catalyst
for economic development, as it facilitates 90% of
world trade. Adam Smith propounded the economic
significance of the shipping sector saying that it
offers a cheap mode of transportation, helping to
open up larger markets
• Over the last decade, carriers have entered into
operational relationships known as alliances to
increase their product offerings and to reduce
their costs. Carriers have been able to do so
because alliances enable partners to rely on and
to combine other carriers' operations in addition
to their own.
• Although alliances have drastically improved
operational efficiency, larger carriers will not take
the logical next step and merge for a variety of
reasons.
• Ironically, regulation through the Federal
Maritime Commission is not one of the factors
dissuading carriers from consolidating.
• The first regional cross border paperless trading and customs
clearance facilitation alliance in Asia
• Established in July 2000by Trade-Van of Chinese Taipei Tradelink of
Hong Kong SAR and Crimson logic of Singapore.
• Currently 9members and

• –Trade Van(Chinese Taipei), Trade link(Hong Kong SAR), Crimson

Logic(Singapore), KTNET (Korea), CIECC (China), NACCS (Japan),
Dagang Net(Malaysia), TEDMEV (Macao SAR),CAT Telecom (Thailand)

• Recently 4 more associates

• -Trade gate of Australia, Inter Commerce of The Philippine, JASTPRO

of Japan and EDI-Indonesia
• -Now 12 regions in Asia
• The Ministry of Shipping, a branch of the
Government of India ,is the apex body for
formulation and administration of the rules
and regulations and laws relating to Shipping.
From 2009 this department is under G. K.
Vasan.
• Shipping Ministry would award 25 port
projects of about Rs 800 crore under the
'Public Private Partnership' (PPP) scheme
during the current financial year
1st september 2010
Enbridge joins CNG
shipping alliance.
 Enbridge operates the world's longest oil and
liquids pipeline system, and owns and
operates Enbridge Gas Distribution, Canada's
largest natural gas distribution company. It
joins Marubeni Corporation and Teekay
Corporation in the Sea NG alliance .
 "Joining the Sea NG Alliance positions

Enbridge to participate in an innovative and

exciting energy delivery business
 Members of alliance are Hapag-Lloyd, NYK
Line and OOCL
 The Grand Alliance, formed in 1998, is the
leading integrated
consortium in global container shipping.
 The Grand Alliance ocean container shipping
venture added Vietnam to its Asia East Coast
Express service on 9th Jan 2010, joining the
rapid buildup of international transportation
connections to the country.
 Current AEX services will be:
Cai Mep, Laem Chabang, Singapore,
Colombo, Cagliari, Halifax, New York,
Savannah, Norfolk, New York, Halifax,
Cagliari, Jeddah, Colombo, Singapore, and Cai
Mep.
 Grand Alliance members Hapag-Lloyd, MISC
Berhad, Nippon Yusen Kaisha (NYK) and
Orient Overseas Container Line (OOCL)
have been awarded “Best Container
Shipping Alliance” at the Asian Freight and
Supply Chain Awards (AFSCAs), held in
Hong Kong on April 22, 2009.
THE SHIPPING
CORPORATION
OF INDIA LTD.
 Crude Tankers
# Crude department looks after scheduling and
deployment of Tankers for feeding crude to various
Indian oil refineries as well as for cross-trading in
international markets.
# Lighterage operations on the east and west coasts of
India are also undertaken, to facilitate quick turnaround
of Tankers, which otherwise cannot call on ports due to
draft restrictions and other infrastructural limitations.
 # The department also ensures commercial deployment
of in-chartered tonnage, to meet its obligations of lifting
cargo under the various Contracts of Affreightment
(COA).
 # SCI is also providing platform tankers to the off-shore
oil fields of ONGC.
 With the gradual establishment/expansion of Indian refineries,
India became self reliant in supply of clean petroleum products
by the year 2000.  

 Thus, the requirement of regular movement of products from

the refinery location to other coastal ports for supply
throughout the country arose, and SCI caters to this
requirement of the oil industry.

 SCI deploys most of its product tankers for the coastal

movement of petroleum products in synergy with the
refineries, establishing an efficient distribution channel and
ensuring uniform supply of clean petroleum products.
 
 Some of the product tankers are also engaged in cross trades
 The Specialized Vessels Cell (SVC) is part of the Bulk Carrier & Tanker
Division, and deals with the operations and management of Liquefied
Petroleum Gas (LPG) Carriers and Chemical Carriers. 

 The LPG Tankers have a capacity of 17,601 DWT, while the Chemical Tankers
are 33,058 DWT each. The three LNG Tankers S. S. Disha and S. S. Rahi, have
a cargo capacity of about 138,000 cubic meters each and the third LNG
Tanker, S. S. Aseem with a capacity about 155000 cubic meters.

 The Chemical Tankers are deployed on long-term Contract of Affreightment

(COA) with Maroc Phosphore for transportation of phosphoric acid from
Morocco to India.  
 Charterers for the LPG carriers in the recent past, include Indian Oil
Corporation Ltd (IOC), Hindustan Petroleum Corporation Ltd (HPCL), Petronas
MITCO, etc. They are currently employed on a time-charter to Indian IOC.
The LNG Tankers are on long-term time charter to Petronet LNG Ltd.  
 Fulfil its obligation to lift nominated quantity of
Phosphoric Acid/LPG/LNG as specified
in COA/other agreements and deliver nominated
quantities to designated port/s in line with the
specified schedule.

 Execute delivery of specified cargoes in the right

quantity and quality from and to the designated

ports, safely and on time, every time .

 The SCI is presently the major Bulk Carrier operator in India,
with an assortment of 18 Bulk Carriers, spanning the handy -
Handymax and Panamax sizes of vessels.

 The fleet is about 20 years old on an average, but individual

vessels range from about 9 years to 23 years in age.

 At the time of acquisition, the vessels had been ordered after

carefully considering the need and utility of these vessels for
India-centric trade. However, there is no physical constraint for
these vessels cross-trading worldwide. They carry a variety of
cargo like iron ore, coal, coke, grain, fertilizer, steel products,
plywood, bauxite, etc.
 The Chartering Department is responsible for meeting all
the requirements of the SCI related to in/out chartering
of all kinds of ships. Accordingly, the department enters
the requirement in the market through weekly broker
meetings or any other day during the week (depending
upon urgency), as per the chartering procedures laid
down. Negotiating officers then negotiate and finalize the
business. 
 The businesses or vessels are normally fixed through
broking channels or sometimes directly with owners or
charterers. Once the business or vessel is fully fixed, all
the necessary documentation is done as per the
chartering procedures laid down. The Charter Party is
drawn and passed on to concerned department for
necessary action.
 Providing market information to the management
through daily/monthly reports.
 Preparing monthly reports on in/out chartering fixtures
concluded by the department.
 Forwarding brokerage commission Debit Notes to
concerned commercial department for payment of
brokerage commission after C/P is signed.
 Conducting weekly meeting with empanelled brokers.
 Reviewing performance of the brokers on a periodic basis