Domestic shipping industry to sustain its performance in FY 2023-24

According to the CareEdge Ratings Report, the domestic shipping industry is projected to sustain its performance in the current FY 2023-24, albeit with some moderation in the operating margins. The outlook for the Indian shipping industry is stable, primarily because the mid-size tanker (both crude and product) and dry bulk segments account for the majority of vessel capacities. In India, the shipping fleet is primarily dominated by crude and product tankers which account for the majority of overall capacity at 57 per cent. However, dry bulk carriers account for 16 per cent of the total fleet and the container vessels share stands at 5 per cent. The recovery in global trade is anticipated to have a positive impact on the shipping industry, which indicates potential opportunities for the growth.