SHIPPING
War-risk
premium shoots up for shipping companies:
Following
the outbreak of war in Iraq, war risk premium for the
shipping companies that are plying their ships to countries in
the Persian Gulf region have shot up sharply. According to reports
the war risk insurance rates for a oil tanker worth $ 50 million
sailing to Kuwait has gone up as high as $1,87,500 compared to
$15,000 prior to the outbreak of hostilities. The earnings of
shipping companies however, are unlikely to be affected, as the
additional insurance burden would be passed on to the customers.
Insurance costs typically make up between 0.1 per cent and 0.5
per cent of the total shipping expenses. While fresh booking of
cargo for the Persian Gulf region have dramatically come down
in the last one week, some of the shipping lines continue to operate
a few vessels, that have been chartered earlier.
Plea
for level playing field for coastal shipping operators: The
Indian National Shipowners' Association and the Indian Coastal
Conference, the latter representing Indian coastal operators have
made a joint representation to the Ministry of Shipping seeking
its assistance to encourage coastal shipping. The appeal was made
at the recent Suminfra 2003, a summit conference organized by
the Confederation of Indian Industry on coastal shipping. Mr.
Sudhir Rangnekar, director of Shipping Corporation of India (SCI),
who spoke on the occasion said that coastal shipping in the country
was neglected compared to other transport modes like road and
railways. He said that there were no incentives available for
coastal shipping operators as was available to other surface transport
operators. He also called for further broadening of the definition
of coastal shipping under the Merchant Shipping Act 1958 from
mere port to port carriage of cargo so as to bring under its purview
also offshore shipping activities, which has become prominent
of late.
Bunker
Surcharge likely if Iraq war is prolonged: With growing uncertainty
about an early end to war in Iraq, shipping fraternity in India
is increasingly finding itself worried about the possibility of
imposition of surcharge being imposed by their principals. So
far the mainline operators have desisted from imposing any surcharges
but should the hostilities in Iraq continue for over next two
weeks, there is strong possibilities that surcharges on bunkering
as well as additional insurance premium will result in hike in
the shipping freight costs. During the last Gulf war, the Singapore-based
Ship Operators Association had imposed a surcharge of $ 50 for
20 feet containers and $ 100 for 40 feet containers. The insurance
underwriters had also slapped a surcharge on insurance premiums
of vessels. Cargoes originating from Mumbai and Kandla would face
a difficult situation as these are mostly transshipped through
Dubai or Salalah ports in the Gulf region
DG
Shipping asks shipping lines to be ready for evacuation: The
Director General of Shipping has notified the Indian shipping
companies on the possibility of their ships being used for evacuating
the Indians from the Gulf region and has also indicated that protection
will be provided to Indian ships operating in the region. The
decision when implemented will have a crucial bearing on Shipping
Corporation of India (SCI), which has several passenger vessels
in its fleet. Two of its passenger ships - MV Harshvardhan and
MV Ramanuja are currently operating in the Andaman & Nicobar
and Lakshadweep Islands linking them to the mainland.
P&O
Nedlloyd makes India its IT outsourcing hub: P&O
Nedlloyd IT services is stepping up its outsourcing activities
in India and is slated to open its third office in Mumbai in April.
The company has already set up its software development operations
in Chennai and Pune. The software development centres in India
are expected to provide back office services to P&O Nedlloyd's
worldwide operations. The software services group of the company
has been set up in India as part of company's global strategy
of cutting down expenditure. P&O Nedlloyd currently has a
similar back office operations in Shenzhen in China, which caters
to the requirements of the North Asian region.
Back
to top
News on Ports
Mumbai
Port Trust invites EOI for cruise terminal: Mumbai
Port Trust (MbPT) has invited expression of interest (EOI) proposals
from interested parties for the development and management of
a cruise terminal at Mumbai port. The proposed scheme envisages
upgradation of facilities at the present passenger terminal building
for cruise vessels at the Ballard Pier extension berth in Indira
dock and management of the terminal. Detailed papers with the
background information and the scheme can be obtained from the
port authorities or on the port's website www.mumbaiporttrust.com.
The last date for submission of EOI papers is May 31 2003.
Back to top
News on LOGISTICS
EOI
bids invited for 100 % stake sale in CIWTCL: The Ministry
of Disinvestment has called for expression of interest (EOI)
from companies and consortium for the strategic sale of government's
100 per cent stake in the Central Inland Water Transport Corporation
Limited (CIWTCL) kicking off the privatization process in the
inland waterway transport (IWT) sector. CIWTCL was incorporated
in 1967 and has two business divisions, river services division
which operates the inland vessels and Rajbagan Dockyard (RD).
CIWTCL disinvestment, unlike disinvestment of other PSUs is
expected to be sale of the entire government stake along with
transfer of management. The final date for submission of EOI
was March 25.
|