To comprehend the significance of shipping in our lives, we only need to look at the different types of goods we use on a daily basis. From basic necessities like the shirt on our back and fruits on our table to the fuel that powers our vehicles and factories, all such commodities are brought to us by world trade – and some 90%1 of world trade is transported by sea. In 2006, seaborne trade reached over 30 trillion2 ton-miles (an increase of 49% compared to trade in 1996).

The three main types of goods transported by sea are dry bulk, oil and containerized cargo. Dry bulk accounted for 38%2 of the world’s seaborne trade in 2006. Oil trade formed the second largest type of cargo accounting for 36%2 and containerized cargo contributed 15%2. These trades are carried by more than 20,0003 merchant ships to various ports around the world, leading to a global cargo throughput of 14.8 billion2 tonnes and container throughput of 440 million2 TEUs4. The operation of these ships generates an estimated annual income of about US$630 billion2 (S$1.05 trillion) in freight rates within the global economy. That’s about 5 percent of total world trade.

In recent years, the world has seen the centre of maritime gravity moving to Asia. Asian countries’ share of world seaborne trade increased to 39%5 in 2006 (compared with 31% in 1996) and where nearly half of the world’s merchant fleet is domiciled in Asia5. 13 of the world’s top 20 ports5 are also located in Asia, handling around 36%5 of the world’s containers. Three of the world’s largest shipbuilding nations are in Asia accounting for 90%6 of global market share.

Besides the growth of the world’s port operations, shipping and shipbuilding have also contributed significantly to the global economy through its demand for supporting services such as ship financing, marine insurance, maritime legal and arbitration services, maritime education and research & development (R&D) etc. The global shipping portfolio of commercial banks is estimated to be about US$ 272 billion7 in 2006.

Currently, the market capitalization of the 182 public shipping companies listed on 35 exchanges is about US$ 359 billion8 and major Asian exchanges account for as much as 34% of the global value. Risk management tools such as trading in forward freight agreements (FFAs) has also grown significantly with notional value of contracts rising from US$ 7 billion in 2002 to US$ 56 billion9 in 2006.

India leverages considerable growth opportunities because it is strategically positioned within Asia. The country possesses a conducive business environment, well-integrated business infrastructure, skilled manpower and advanced maritime R&D in support of the continued growth of the Indian Maritime Industry that serves worldwide requirements.