Cheered by profit earned from liner operations in the first-half of the current fiscal year – US$18.73 million including $15.65 million from container services alone, Shipping Corporation of India (SCI) is considering resuming container services to ports on the US East Coast, reported The Hindu.
However, the timing and selection of partners are yet to be finalised.
“We'll launch the services only if they are profitable,” an SCI spokesman said.
The selection of partners, he felt, should not be much of a problem. “We've teamed up with some of the world's leading container operators in other liner services,” he said.
SCI stopped an earlier service to the US East Coast, run as a joint service in partnership with “K” Line and Zim, in 2007-08 after incurring substantial loss.
One reason for the withdrawal was the reluctance of the partners to continue the service.
SCI's current liner container service network is fairly widespread, covering the Far East, including north and South China, Europe and the Mediterranean, West Asia, the Gulf and recently East Africa.
“The two major routes still left out are the US and Australia-New Zealand; of these, the US should receive priority,” he said. SCI's break-bulk services to Australia and New Zealand were suspended long ago.
But the US, it was pointed out, is not an easy market. “There are so many issues that need to be sorted out before one can decide on launching the service,” the spokesman said, pointing out that a shipping line withdrawing a service after launching it would be liable to pay a hefty sum as penalty to the agencies concerned.
Currently, SCI's container fleet comprises five vessels — three of 1,800 TEUs and two of 4,300 TEUs each.
It has placed orders for three more vessels of 6,500 TEUs each, besides it is weighing a proposal to acquire three more vessels of 3,500 TEUs each.
The 6,500 TEU vessels will be delivered in two to two-and-half years' time.
However, it would be difficult for most Indian ports to handle these vessels when fully loaded because of the draft problem.
“We'll load them partly in JNPT and send them to some other deep draft port, may be Mundra, for topping up as we're doing now in regard to 4,300 TEU vessels,” the spokesman added.
However, the timing and selection of partners are yet to be finalised.
“We'll launch the services only if they are profitable,” an SCI spokesman said.
The selection of partners, he felt, should not be much of a problem. “We've teamed up with some of the world's leading container operators in other liner services,” he said.
SCI stopped an earlier service to the US East Coast, run as a joint service in partnership with “K” Line and Zim, in 2007-08 after incurring substantial loss.
One reason for the withdrawal was the reluctance of the partners to continue the service.
SCI's current liner container service network is fairly widespread, covering the Far East, including north and South China, Europe and the Mediterranean, West Asia, the Gulf and recently East Africa.
“The two major routes still left out are the US and Australia-New Zealand; of these, the US should receive priority,” he said. SCI's break-bulk services to Australia and New Zealand were suspended long ago.
But the US, it was pointed out, is not an easy market. “There are so many issues that need to be sorted out before one can decide on launching the service,” the spokesman said, pointing out that a shipping line withdrawing a service after launching it would be liable to pay a hefty sum as penalty to the agencies concerned.
Currently, SCI's container fleet comprises five vessels — three of 1,800 TEUs and two of 4,300 TEUs each.
It has placed orders for three more vessels of 6,500 TEUs each, besides it is weighing a proposal to acquire three more vessels of 3,500 TEUs each.
The 6,500 TEU vessels will be delivered in two to two-and-half years' time.
However, it would be difficult for most Indian ports to handle these vessels when fully loaded because of the draft problem.
“We'll load them partly in JNPT and send them to some other deep draft port, may be Mundra, for topping up as we're doing now in regard to 4,300 TEU vessels,” the spokesman added.