Domestic Shipping Industry likely to sustain performance in FY24 : CareEdge Ratings

NEW DELHI : The domestic shipping industry is projected to sustain its performance in the current fiscal, albeit with some moderation in operating margins, CareEdge Ratings said in its report on Wednesday. The outlook for the Indian shipping industry is stable, primarily because the midsize tanker (both crude and product) and dry Bulk segments accountforthemajorityofvesselcapacities,itsaid.

These segments are anticipated to fare well in the overall shippingindustry,itsaid.

The Indian shipping fleet is primarily dominated by crude andproducttankers,accountingforthemajorityoftheoverall capacityat57percent.

While dry bulk carriers account for 16 per cent of the total fleet, the container vessels share stands at 5 per cent, as per theratingagency.

With the global merchandise trade volume projected to slow down in CY 2023 and given the highest capacity additions in CY2023-CY2024, the container shipping segment is expectedtobetheworstimpacted,itsaid.

The recovery in global trade is anticipated to have a positive impact on the shipping industry, indicating potential opportunitiesforgrowthandimprovedearnings,itsaid.

The tanker segment is expected to maintain its previous year’s performance in the current calendar year as well due to the lowest capacity addition and redistribution of crude trade flow by key consuming economies, CareEdge Ratings said.

The performance of the dry bulk carrier segment is expected to improve in the second half of CY2023 driven by supply-sidedynamics,accordingtothereport.

The report noted that the financial performance of the two largest domestic shipping companies– Shipping Corporation of India and Great Eastern Shipping Company– reflects a consistent improvement in revenues and profitability during Fy23.

CARE Ratings said it anticipates that these companies, assumed to be representative of the domestic shipping industry contributing around 45-50 per cent of the country’s total tonnage, will demonstrate a stable business and financialriskprofileinthecomingyear.

It said that the shipping industry has witnessed a period of recovery in charter rates and profitability across various vessel segments in the past two calendar years (specifically from CY2022 onwards for the tanker segment and over the CY2021-CY2022 period for the container carrier and dry bulk segments).

However, the overall industry performance is currently exhibitingsignsofweakness,assupplyinseveralsegmentsis expanding at a faster pace than demand, posing potential challengesinthemarket,itsaid.

The tanker segment is presently characterized by low order books for new ships at global shipyards, indicating a positiveearningsoutlookforCy2023.

Conversely, the container, larger LPG carrier, and capsize bulk carrier segments are grappling with unfavourable market conditions, primarily due to significant order books at shipyards resulting in a potential supply surplus, as per CareEdgeRatings.

In summary, while the crude, product, and chemical tanker segments demonstrate a positive earnings outlook for CY2023 owing to their low order books, the container, larger LPG vessels, and capesize bulk carrier segments face challenging market conditions with the possibility of surplus capacityinCY2023-CY2024,theratingagencysaid.

m.v “MONTPELLIER” V-2328W

The above vessel has arrived at Mundra on 23/07/2023 as per following details.

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Consignees are requested to obtain the DELIVERY ORDERS on presentation of ORIGINAL BILLS OF LADING duly discharged and on payment of relative charges as applicable within 5 days or else Detention Charges will be applicable. If there is any delay in CY-CFS / lCD's movement due to port congestion or any other cause beyond the control of the Shipping Line / Agents are not responsible for the same. Also note that the Shipping Line / or their Agents will not be held responsible for auction by Port / Customs / Custodian of uncleared cargo on expiry of stipulated period as laid down in the byelaws.

Consignees are advised that the carriers and/or their Agents are not bound to send individual notifications regarding the arrival of the vessel or the goods.

For vessel ETA / IGM- ITEM/ Exchange Rate / Local charges & Detention Charges please contact our office.

Emirates Shipping Agencies (India) Pvt. Ltd

Rajkamal-II, Office No. 103, 1st Floor, Plot No. 342, Ward - 12/B, Gandhidham - 370201. India. In case of any query kindly contact the below E-mail IDS & Phone Numbers :

IMPORT related : ravi.vaghela@in.emiratesline.com

Tel. No. : +91-2836-239378 / 239379 - Mob. : +91 89809 97977

EXPORT related : hardik.jadeja@in.emiratesline.com

Tel. No. : +91-2836-239378 / 239379 - Mob. : +91 98980 76324

IGM Tracking : http://www.emiratesline.com : 8090/eadmins/igm_main.jsp.

Notice To Consignees

2236E

No : 2349993 Date : 21-07-2023 The above vessel has arrived at Mundra on 24-07-2023 as per following details.

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Consignees are requested to obtain the DELIVERY ORDERS on presentation of ORIGINAL BILLS OF LADING duly discharged and on payment of relative charges as applicable within 5 days or else Detention Charges will be applicable.

If there is any delay in CY-CFS / lCD's movement due to port congestion or any other cause beyond the control of the Shipping Line / Agents are not responsible for the same. Also note that the Shipping Line / or their Agents will not be held responsible for auction by Port / Customs / Custodian of uncleared cargo on expiry of stipulated period as laid down in the byelaws.

Consignees are advised that the carriers and/or their Agents are not bound to send individual notifications regarding the arrival of the vessel or the goods.

For vessel ETA / IGM- ITEM/ Exchange Rate / Local charges & Detention Charges please contact our office.

Emirates Shipping Agencies (India) Pvt. Ltd

Rajkamal-II, Office No. 103, 1st Floor, Plot No. 342, Ward - 12/B, Gandhidham - 370201. India. In case of any query kindly contact the below E-mail IDS & Phone Numbers :

Mob. : +91 98980 76324