Indian vessels lose out on haulage

In 2003-04, more than half the vessels chartered by the shipping ministry to carry cargo were of foreign origin, indicating the inadequacy of the Indian fleet in supporting the country's trade.

According to shipping ministry data, 58 per cent of the vessels arranged by Transchart, the centralised chartering wing attached to the shipping ministry, sailed under a foreign flag.

The lower share of Indian ships in the overall movement of Transchart cargo means a loss in freight earnings, a ministry official said.

He added that India's major disadvantage is that it has to pay higher freight to foreign vessels to carry its cargo.

The comforting factor, however, is that the share of trade being handled by Indian flag carriers has been improving over time. While in 2000-01, the share was 23.37 per cent, it rose to 32.12 per cent in 2001-02, touching 37.45 per cent in 2002-03.

Indian vessels in 2003-04 handled only 31.12 per cent of the 59.2 million tonnes of imports arranged by Transchart, while the rest was accounted for by foreign vessels. This is more than the 26.79 per cent registered in 2002-03.

Also, the quantum of total imports arranged by Transchart in 2003-04 was 29.7 per cent more than the 45.65 million tonnes recorded in the previous fiscal. This was mainly on account of a 40.7 per cent growth in liquid cargo to 47.75 million tonnes from 33.9 million tonnes in 2002-03.

As usual, liquid cargo accounted for about 80.6 per cent of total imports. Dry cargo imports also increased by 6.2 per cent.