India Shipping Fleet Bullish on New Rules

 

The government  is proposing a law for importers to sign 5-year contracts with local shipping firms. 

 

Country's state-owned firms may have to give half of their freight business to local shippers. This is done to help rescue the industry battered by the global commodities downturn.  

 

The new rules will boost Indian shipping fleet, but may dent foreign shippers, according to market sources.

 

India's cabinet could consider making it mandatory for state-owned oil, steel, coal and fertilizer importers to route at least half of their cargoes through local shipping companies as part of a broader agenda of Prime Minister Narendra Modi to shore up and protect the ailing sector.

 

In 2013-14, India paid about $57 billion in freight payments to foreign firms.