India had flourishing maritime trade during ancient days. Its vessels sailed to the coasts of East Indies and Middle East. The shipping got a set back with the arrival of European companies during the colonial rule. DuringFirst World War, the necessity of the shipping was realised. Accordingly, the Scindia steam Navigation Co. Ltd. started in 1919. At the time of Independence there were 59 ships with less than 2 lakh tones of GRT (Gross registered tonnage).
The Shipping Policy Committee appointed in 1947 recommended that (a) India should secure 100% of her coastal trade; (b) she should secure 75 per cent of her trade with Myanmar, Sri Lanka and other neighbouring countries; (c) she should secure 50 per cent of her overeats trade; and (d) 30 per cent of the Orient’s trade. The first plan envisaged a rise in the country’s shipping tonnage from 390,707 GRT to 600,000 GRT by 1955.
In order to enable the public sector participation in shipping industry the Eastern (in 1950) and the Western (in 1956) Shipping Corporations were set up which were later on merged into Shipping Corporation of India Ltd. in 1961.
The Indian shipping capacity has grown steadily during the last 50 years. The merchant fleet consisted of 59 ships with 1.92 lakh GRT in 1947 which increased to 390 ships with total ^hipping tonnage of 56.29 lakh GRT in 1980. As on 1 April, 2005 the net operative tonnage consisted of 686 ships totaling to 80.1 lakh GT. The country has the largest merchant shipping fleet among developing countries and ranks 19th in the world in shipping tonnage.
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The share of Indian shipping in the transportation of cargo in the country’s overseas trade has been rising from 6.5 percent in 1955-56 to 11.2 per cent in 1961-62, 19.9 percent in 1970-71 and31.54 per cent in 1999-00 Indian shipping at present constitutes only 1 per cent of the total world fleet and only 0.52 per cent of the world tonnage. There has been decline in the shipping fleet of the country in recent years due to large scale scrapping of overage vessels.
India’s total overseas trade presently consists of 5.3 lakh GRT of general cargo, 27.6 lakh GRT of dry bulk cargo and 27.4 lakh GRT of oil cargo with percentage share of 8.5, 44.4 and 44.1 respectively. About 70 per cent of general cargo consists of iron ore export to Japan. For this purpose special ore handling capacity has been developed at Marmagao, Chennai, Vishakhapatnam, Paradwip and Haldia ports.
Shipping Companies
There were 83 shipping companies in the country in operation as on 31 March, 1998. Of these, 49 were engaged exclusively in coastal trade, 19 in overseas trade and 15 in both coastal and overseas trade. Shipping Corporation of India, a public sector undertaking, is the biggest shipping line of the country with a merchant fleet of 86 vessels and 27 lakh GT, (46 lakh DWT), operating overseas tanker and bulk-carrier services on almost all the important routes.
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Its tonnage accounts are about 40 per cent of the total Indian tonnage. Major private sector shipping companies which own two lakh or more GRT are: Great Eastern Shipping Company Limited (8.81 lakh GRT), Essar SSICO Limited (5.77 lakh GRT), Chowgule Steamships Limited (2.50 lakh GRT), and Tolani Shipping (1.75 lakh GRT). The Mughal Line Ltd. (2 lakh GRT) with a fleet of 16 vessels mainly carries Haj pilgrims from Mumbai to Jeddah and back. It also operates cargo services on the Indian coast as well as to foreign countries.
Indian ships carried 459.9 lakh tons of cargo (16.7 per cent of the total overseas trade) in 2001-02 against 392.9 lakh tons of cargo (35.60 per cent of the total overseas trade) in 1990-91.
Coastal Shipping
Coastal Shipping is an energy-efficient, environment friendly and economical mode of transport in the inland transport network and a crucial component for development of domestic industry and trade. India has 7,517 km long coast-line studded with 13 major and 184 minor and intermediate ports providing congenial and favourable conditions for the development of domestic transport infrastructure.
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The coastal fleet of the country consists of 457 ships with 8 iakh GRT and 8.6 lakh DWT on March 2005. Of 83 Indian shipping companies 49 are exclusively engaged in coastal trade and 15 in both coastal and overseas trades. The Government has accepted the report of the Tata Consultancy Services to assess the potential of coastal shipping and the role of minor ports.