The shipping companies earn around one-third of their revenues from the dry bulk operations. The list of companies owning such vessels include GE Shipping (11), Mercator Lines (12) and Shipping Corporation of India (20).
Shipping Corporation of India (SCI) chairman S Hazara said: “The fall in the index indicated that the financial crisis has affected international trades. This has negative implications for the developing countries, specially those dependent on commodities. But, the possibility of shipping companies stopping operations immediately is low.”
Industry analysts said the downturn in the shipping operations could be attributed to the global slowdown in the demand for commodities. For example, demand for iron ore, which contributes one-fourth of the dry bulk shipments, has come down drastically in the recent past. Moreover, the crisis in the global financial market has dried up the supply of credit, aggravating the problems of the shipping companies.