Page 8 - ITLN-September-October-2024-Issue-for-Website

Cover Story
Indian
Shipping

“No shipping line in the world
would base its investments solely on
India. They might invest based only
on Europe, the U.S., or China, but not
India alone. As a result, India remains
primarily a transit point for other
markets,” he added.
Prakash has over 27 years of
experience in the logistics industry and
particularly LCL consolidation. In 2006,
Prakash co-founded Global Logistics
Solutions (GLS), which has since
expanded to 18 locations across India
with 300 employees. GLS specializes
in LCL consolidation and project
handling and has also ventured into
operating its box division, managing
300-400 containers and handling
around 600 containers monthly. The
company is now focusing on growing
its Non-Vessel Operating Common
Carrier (NVOCC) business, air import
will pass throughout the year from consolidation, and project shipments to
here,” the prime minister said. diversify its services.
While, as a country, India is building He also points out the importance of
its infrastructure, the prime minister building bigger ports to handle larger
also stressed the need to strengthen vessels, which will lead to more stable
its position in the global supply freight rates and increased efficiency.
chain. While virtually inaugurating “If India builds larger ports with
the Tuticorin International Container deeper drafts, such as 19 or 20
Terminal at V.O. Chidambaranar Port meters, we can accommodate vessels
on September 16, 2024, he said, “We with capacities of up to 24,000 TEUs.
are working collectively to build a well- From an infrastructure perspective,
connected Bharat. Today, connectivity expanding our ports to handle these
has increased with the expansion of larger vessels is a positive move.
roadways, highways, waterways, and Larger ships allow for greater
airways across the country. As a result, In India, the shipping operational efficiency due to their
Bharat has significantly strengthened industry faces a higher fuel efficiency and ability to
its position in global trade. Bharat is significant disadvantage cover long voyages,” he said.
becoming a major stakeholder in the as it is not recognised “If these vessels make direct calls
global supply chain.” as a mainstream to India, it could open up new routes,
While building bigger ports, industry, but rather as an such as direct voyages to south and
increasing handling capacity and latin America, which currently rely on
attracting bigger vessels can boost ancillary one. This lack transhipment. Whether westbound
India’s significance in the global of recognition affects or eastbound, accommodating these
value chains, the country has a long how banks view shipping vessels will benefit us by potentially
way to go. assets. reducing freight rates, as larger
For instance, Naveen Prakash, vessels contribute to more stable and
Director, Global Logistics Solutions, Pushpank Kaushik cost-effective shipping,” he added.
points out that India is not a deciding Jassper Shipping The Indian shipping industry is also
factor in global ocean freight. affected by internal issues including
“India is still dependent on the predict freight rates for the coming regulatory hurdles and wrong policies.
global freight market, not due to its months or quarters. Freight rates For instance, Pushpank Kaushik,
own volume. We constantly have to won't decrease simply because India's CEO of Jassper Shipping argues that
look to both the east and west to volumes are increasing.” the Indian shipping industry is not
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