The shipping industry has survived the choppy waters of 2010 but the New Year may not ring in happy tidings either, said shippers. While bottomed out charter rates, excess supply of vessels in the market and slowdown in trade troubled shippers this calender year, freight rates for most asset classes, now weak, are expected to remain so for much of 2011 too, according to industry players.

?The shipping industry has been going through tough times,? says S Hajara, CMD, Shipping Corporation of India (SCI).

?There is a huge excess supply in the market, which is keeping chartering rates down. In my view, charter rates will see no respite before the end of 2011 or start of the year 2012.?

However, the industry, which witnessed high rate of slippages and cancellations this year, can look for some respite as demand picks up seasonally prior to the Chinese New Year (February 3). Retailers stockpile inventories prior to China factory closures for 2-3 weeks during and after the New Year holidays.

A slew of corporate developments kept the sector abuzz this calendar year. Great Eastern Shipping?s subsidiary Greatship (India) filed a Draft Red Herring Prospectus (DRHP) with the market regulator Security and Exchange Board of India for an initial public offering (IPO) in May.

Also SCI in December went for a follow-on public offer (FPO).

It also floated a tender to pick up a minority stake in a shipyard, which might fructify next year. Meanwhile, Punj Lloyd sold its about 20% stake in Pipavav Shipyard to SKIL Infrastructure for Rs 650 crore.

The Year 2010 witnessed active involvement of the shipping ministry in favorable policy amendments. ?Coastal shipping will gain prominence next year and the shipping industry awaits some trade-friendly policies in the direct tax code (DTC),? said Anil Devli, CEO, Indian National Shipowners Association (INSA).

Total order inflow gained marginally in July 2010 after having declined earlier. The gains were largely in the bulker segments in Capesize and Panamax.

The majority of the orders continue to be concentrated in South Korea, China and Japan, and the industry seems to be focusing on bigger vessels.

Meanwhile, the offshore segment in India, of which only 18% has been explored so far, saw increased activity, which will continue as oil demand puts pressure on the need to discover large oil reserves every year.