Shipping Corporation of India (SCI) is poised to reach out to East Africa with its container services, the fifth route it will start from November 27 to tap the increasing containerised cargo market.

Although this is the only new route, which SCI has added in its container service segment after discarding the Red Sea container service in 2009, it actually plans to go bullish in the container segment.

According to a board of directors report, there would be slippages in delivery of container vessels across the globe by around 33% in 2010-2011 and this would create a supply crunch of ships carrying containers. While containerisation of cargo would continue to grow even in the current year, delivery of container vessels would start coming from end 2011 and 2012 onwards. This situation, according to the report, is expected to increase freight rates and SCI should make the best use of it.

According to an SCI press release, the new service, Indian Subcontinent to East Africa (ISEAFR), would be operated with three 1,200 TEU (tonne equivalent unit) vessels with a voyage frequency of ten days and this would lead to three voyages per month.

The port of call would be Colombo, Mombasa and Dar -e- Salaam but this would also be able to pick up Tanzanian and Kenyan cargo. ?We are looking into the possibilities of providing coverage to Tanzanian and Kenyan ports with an eye on the emerging business opportunities there,? an official on the condition of anonymity said.

SCI, which has already filed the red herring prospectus, to hit the capital market with a follow on public offer, is looking for additional avenues to increase its revenue and profitability.

The company’s gross income went down to Rs 3,896 crore in 2009-2010 from Rs 4,564 crore in preceding year and profit to Rs 849 crore in 20009-2010 from 1,469 crore in 2008-2009 since freight rates were down by an average 45% after the global economic melt down. While baltic dry index was an average 4,896 in 2008-2009, it came down to 2,978 in 2009-2010. However, Baltic Dry Index has been hovering between 2,485 and 2,188 during the week which shows freight rates are still under pressure.

In fact, movement of bulk and crude cargo are yet to reach the desired level post melt down and the current shipping trend is of increasing containerised traffic, an official said.