Page 212 - DMGT546_INTERNATIONAL_TRADE_PROCEDURE_AND_DOCUMENTATION

Unit 9: Characteristics of Shipping Industries

9.12 Summary Notes

The demand for transport services is a derived demand. The derived demand is dependent
upon the nature of goods traffic in international trade. If the demand for a commodity is
more, the relative nature of that goods traffic becomes more.
In India custom clearance is a complex and time taking procedure that every exporter faces
in his export business. Physical control is still the basis of custom clearance in India where
each consignment is manually examined in order to impose various types of export duties.
High import tariffs and multiplicity of exemptions and export promotion schemes also
contribute in complicating the documentation and procedures. So, a proper knowledge of
the custom rules and regulation becomes important for the exporter. Indian Shipping
consists of 31 major companies (INSA members) with Shipping Corporation of India
(SCI), the central PSU being the largest one. The country has the largest Merchant Shipping
fleet among the developing countries and is ranked 17th in the World. Regulation of
merchant shipping is governed by Merchant Shipping Act, 1958. Apart from facilitating
transportation of national and international cargoes, Indian maritime sector also provides
a variety of other services such as cargo handling services, ship building and ship repairing,
freight forwarding, light house facilities, training of marine personnel, etc.

9.13 Keywords

Cargo Ship or Freighter: A cargo ship or freighter is any sort of ship or vessel that carries cargo,
goods, and materials from one port to another.
Conference: A conference is an association of two or more liner shipping companies.
Containerisation (or Containerisation): It is a system of intermodal freight transport using
standard intermodal containers as prescribed by the International Organisation for
Standardisation (ISO).
Shipping Line: A shipping line is a business that operates ships.
Time Charter: Under time charter arrangement, a ship is hired for a fixed time period with the
condition that the ship is to be operated in specified territories.
9.14 Review Questions

1. What are different modes of shipment? Identify their important characteristics.
2. Write a brief note on the history of shipping history in India.
3. Discuss the role of intermediaries in shipping industry.
4. Highlight the latest trends in logistics operations.
5. What are the significant characterstics of shipping industry?
6. What is Conference System and Practices in International shipping?
7. Explain the Chartering Practices used in shipping Industry.
8. Explain the role of Clearing and Forwarding agent in shipping Industry.

Answers: Self Assessment

1. Air transport

2. Water Transport

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