Shipping Heading North? - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Shipping Heading North?

May 16, 2000

Financial year 2000 ended on a promising note for the shipping sector. Port traffic during the year registered an 8% growth at 272 million tonnes. The signs of improved global trade scenario should boost the domestic trade as well.The shipping sector is witnessing a good year in terms of traffic growth thanks to the improved trade scenario. Major ports handled 25 million tonnes, the highest in FY00, during March 2000. The share of petroleum, oil and lubricant in the total cargo transported during the year is up 43% followed by 13.6% for coal.

The commodity trade Basket

' 000 tonnesFY98FY99FY00Projections for IXth
five year plan (as on 31.2.2002)
POL 104,038 105,852 116,636 186,726
Iron Ore 39,227 32,544 34,224 34,400
Fertilisers 9,854 9,813 10,191 93,710
Coal 39,393 38,746 37,085 14,212
Containers in ' 000 MT 23,120 23,782 27,692 38,665
Other Cargoes 35,875 40,958 46,041 56,225
Total 251,507 251,695 271,869 423,938

After posting negligible growth in both FY98 and FY99, shipping volumes in most segments have been improving with the recovery in the demand for commodities and renewed economic growth in Asia. This is backed by significant growth in both exports and imports for India as well.

The margins for the shipping companies should improve with the overall freight rate indicator, the Baltic index, rising in recent months. Topline growth should benefit from additions made to the gross registered tonnage (grt) (shipping capacity) during the year.

Domestic shipping companies are beginning to shake off the recent slowdown in global trade. In coming months, as the Japanese, Southeast Asian and the Indian economies accelerate, the sector is likely to benefit from higher traffic and better freight rates. The latter however would also depend on additions to shipping capacity.

Equitymaster requests your view! Post a comment on "Shipping Heading North?". Click here!


More Views on News

SHIPPING CORP Announces Quarterly Results (3QFY21); Net Profit Down 63.7% (Quarterly Result Update)

Feb 10, 2021 | Updated on Feb 10, 2021

For the quarter ended December 2020, SHIPPING CORP has posted a net profit of Rs 1 bn (down 63.7% YoY). Sales on the other hand came in at Rs 8 bn (down 33.1% YoY). Read on for a complete analysis of SHIPPING CORP's quarterly results.

G.E.SHIPPING Announces Quarterly Results (3QFY21); Net Profit Down 46.7% (Quarterly Result Update)

Feb 1, 2021 | Updated on Feb 1, 2021

For the quarter ended December 2020, G.E.SHIPPING has posted a net profit of Rs 2 bn (down 46.7% YoY). Sales on the other hand came in at Rs 8 bn (down 30.1% YoY). Read on for a complete analysis of G.E.SHIPPING's quarterly results.

G.E.SHIPPING 2019-20 Annual Report Analysis (Annual Result Update)

Nov 20, 2020 | Updated on Nov 20, 2020

Here's an analysis of the annual report of G.E.SHIPPING for 2019-20. It includes a full income statement, balance sheet and cash flow analysis of G.E.SHIPPING. Also includes updates on the valuation of G.E.SHIPPING.

More Views on News

Most Popular

My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)

Mar 31, 2021

A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.

My Stock Trading Strategy (Fast Profits Daily)

Mar 31, 2021

In this video I'll show you exactly how I go about picking stocks for trading.

4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)

Apr 6, 2021

Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.

If the Market Falls, I Will Do This... (Fast Profits Daily)

Apr 1, 2021

What should you do if the market falls? In this video, I'll tell you what I will do.

India: Recovery Stalled by Vaccine Games? (The Honest Truth)

Apr 13, 2021

Ajit Dayal on how India's vaccine strategy will impact the markets.


India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms