Great Eastern Shipping corporate getting into container shipping amid global oil trade shifts

MUMBAI : According to a top corporate executive, Great Eastern Shipping corporate, the largest private ocean carrier in India, may “evaluate” getting into the container shipping business. An industry analyst speculates that this could be a diversification plan meant to reduce the risks involved with the oil trade as the globe shifts to renewable energy sources, thereby reducing the amount of crude and petroleum products delivered by sea.

Rahul Sheth, General Manager of Great Eastern Shipping, said that the Red Sea situation is currently driving a very hot market. The transportation industry that has profited the most is likely the container space, much more so than the petroleum product end. On the other hand, there is no idea how the Red Sea problem will develop. If it goes the other way, that sector’s earnings may change.

Executive Director and CFO G Shivakumar, claims that their history indicates that they are more likely to enter a market when it is struggling. Being countercyclical investors, their typical approach is to purchase during periods of market weakness rather than strength.

Although it would take some time, Great Eastern Shipping’s intention might be just what Indian exporters have long desired. With the exception of a brief period of normalcy, exporters have been lobbying the government for a national container carrier in order to lessen their reliance on international box lines, a move motivated by the substantial freight spikes that have occurred since the outbreak and the ongoing Red Sea issue.