Managing Risk In Shipping Is Major Challenge: Experts

Mumbai, January 19: | Updated: Jan 20 2003, 05:30am hrs
With risk profile in shipping operations growing multi-fold, managing them will be the biggest challenge in the mercantile maritime world. Even one casualty during operations can dip your profit, Great Eastern Shipping president Arun Sharma said.

He was speaking at a seminar on Maritime Vision 2027 organised by the Dufferin, Rajendra and Chanakya Ex-cadets Association as part of the platinum jubilee celebrations of maritime training in India.

Participating in the seminar, Admiral Nadkarni said apart from the business risk, future threat could also include a crude carrier pirated by terrorist with 200 tonne of crude on board reaching the coastline of a country and posing to destroy the entire city and not restricting to one or two important buildings. International Maritime Organisation is looking at this threat and plans to depute sea marshals on the vessels similar to sky marshalls on air-flights, he added.

Admiral Nadkarni was confident about the Navy existing in 2027, but was sceptical about the existence of the Indian merchant navy 25 years later in light of the dipping Indian tonnage. On the financial aspects of shipping, Varun Shipping MD Yudhistir Khatau citing a case study said that 57 per cent of the revenues earned through a ship in its life span goes in repayment of the interest and loan component.