The credit crisis is the biggest issue for the shipping industry as nobody is willing to lend, lamented S Hajara, chairman and managing director of Shipping Corporation of India.
"The bulk carrier business has declined by about 95 per cent, container sector is affected badly and rates are down by about 40 to 60 per cent and the least-affected tanker market also has suffered by about 25 to 30 per cent," he said.
However, inspite of recession Industry did not witness job cutdowns. Reason: There is already actue shortage of manpower.
Speaking at a press conference on Thursday, Apr 2 he elaborated on the credit crisis. "For shipping companies, external commercial borrowing was the main funding source, which has dried up completely." he said.
He said: "Indian banks are also not interested in lending to shipping companies. We have urged the government to ask banks to provide credit to the shipping companies."