Shipping Corporation of India Faces Challenges in Fleet Expansion Amid High Demand

The shipping industry is currently experiencing high demand for container ships and bulk carriers due to the diversion via the Cape of Good Hope. This surge in market activity has made it challenging for the Shipping Corporation of India (SCI) to expand its fleet as fleet owners are hesitant to respond to SCI’s request to add additional second-hand tonnage through a tender. SCI had earmarked a budget of Rs 2000 crore to purchase six vessels, including container ships, gas tankers, product tankers, and other types of vessels, all ranging in capacity and age.

Among the vessels SCI planned to purchase were a container ship with a capacity of 9000 to 12000 TEU, a very large gas tanker, a medium-sized product tanker, an anchor handling tug supply vessel, a multipurpose supply/offshore vessel, and a high-speed vehicle. However, the response to the tender from ship owners has been limited. It is anticipated that as newbuilds are added to the fleet in the coming years, SCI may have the opportunity to offer some of these used vessels for sale.

In the next 2 to 5 years, as new vessels are ordered by shipping companies and added to the market, it is expected that SCI will be able to offer some of their used vessels for sale. Despite facing challenges in expanding its fleet due to the high demand for container ships and bulk carriers, SCI remains optimistic about its future growth in the shipping industry. The company had initially planned to purchase six vessels with varying capacities and ages, but the response from fleet owners to add additional tonnage has been lacking.

Source .