The ensuing slowdown in the US economy, may have a cascading affect on other economies the world over, and in turn, will impact the shipping industry in India too. The slowdown will affect the container movement as also the tanker market - which is disturbing, industry experts said.

Currently, Indian shipping companies like Essar and GE Shipping have deployed their fleet in the international seas in anticipation of a more remunerative rate and prompt payment at the end of the day. Indian shipping companies are also in the process of expanding their fleet, in anticipation that the current boom will continue.

However, Chowgule Steam-ships director MP Patwardhan differed on the issue. He said that though there are symptoms of a slowdown in the US economy, the apprehensions are unlikely to come true as its apex bank has already undertaken a rate cut and is again meeting this week for another 0.5 per cent rate cut.

The US economy, which has seen a boom period of eight consecutive years, may see a slight correction, but the US government is already taking all precautions to arrest any negative impact on its economy, he said.However, Mr Patwardhan did not completely reject a downward trend in freight rates, which may be more on account of the demand-supply difference in the ships availability.

Another school of thought in the industry believes that it is too early to predict the outcome of a slowdown in the US economy. With the new president just assuming office and giving priority to education ahead of the industry, the signal is slightly disturbing not only for the shipping fraternity, but also for other industries since the US economy is the backbone of the global economy.