Asia/Pacific News
Shipping Exec Predicts Recovery for Indian Market in 2013
The head of The Shipping Corporation of India Ltd. (SCI) predicts a recovery of the nation's shipping industry in the middle of next year, Indian business news site Live Mint reports.
"I do believe that the demand-supply equilibrium would be restored by the middle of 2013," said S. Hajara, chairman and managing director of SCI, speaking at the India Shipping Summit.
"I think tanker and container freight will recover fast."
Hajara said "record deliveries of vessels" in 2010, followed by a slump in global trade, led to a demand-supply mismatch, but that Indian companies have since slowed or halted plans to buy ships.
He said that in the current market shipowners face low income levels for high-value ships.
"This is a big challenge faced by shipowners," he said.
"Also, the ships delivered now are not as energy efficient compared with ships ordered a year ago."
Another speaker at the event, N. Shankar, chief executive of consultancy firm Vinsight Maritime (S) Pte Ltd, said he doesn't expect a recovery in the industry until 2014.
''It is unlikely for shipping industry to recover in 2013," he said.
"It's not deliveries of ships driving the recovery of shipping industry, but sentiment."
In its most recent financial statement, SCI showed a $9.91 million loss for the first quarter of fiscal 2013, with the cost of bunkers representing a "key factor" in the results.
