The Challenges Faced By Shipping Companies In India Today

The Challenges Faced By Shipping Companies In India Today

It is difficult to imagine the economy running smoothly without the shipping industry as it forms a very integral part of it. Especially in the subcontinent, the role of the shipping industry in India is very significant. It facilitates very good means of trade. However, due to a lot of changes, there are challenges faced by shipping companies.

1) Economic Recessions: ​Shipping companies get immediately affected by changes in the economy. The reasons are varied like political instabilities, inconsistent manufacturing sectors, inflation and so on. In case of recessions, the consumer demand is drastically affected.​ ​Freight demand​ takes a big hit as well. All this has to be managed by cost cutting, and it surely poses a serious challenge in modern times.

2) Lack of Employees: ​Manpower plays a very significant role in the shipping industry.

It cannot run without manpower, and it is essential to employ the necessary manpower.​ ​Lack of skilled personnel and specialists affects the industry drastically.

Problems like high labour turnover, increased training costs and under-performing human resources affect the ​shipping​ ​company in India​.

3) New Environmental Regulations: ​There are various environmental regulations that impact the operations of shipping companies. Every time they change, they have a huge impact on the shipping industry. The ever changing Zonal permit laws, taxation and clearance impact logistics have an impact on the shipping companies. Multiple interference of the central, state and local governments with overlapping powers add to the confusion in operations.

4) Security Risks: ​There are several threats that the shipping industry faces in terms of shipping, trade and supply chains through conflicts, territorial disputes, cyber-attacks, sanctions, piracy and even sabotage.

5) Rising Costs: ​Top shipping agents in India​ are gravely affected by rising costs. They bear the brunt as they do not have access to any lucrative government schemes. The burden of taxes like Customs Duty on Bunkers, Landing Fees, Income Tax lies on them. With ever changing prices of fuel leading to increase in the surcharge to the freight tariffs affects the shipping industry.

The shipping industry in India is subject to external and internal challenges. With the use of careful management, planning and realistic goal-setting, the challenges can be overcome.