By Wasana Nadeeshani Sellahewa
(Commonwealth) _ The Indian government is preparing to implement new regulations that will impose age limits on ships calling at its ports, and the effects of this impending ban have been outlined in detail by Greek data company MarineTraffic. Under the new rules, no bulk carrier, tanker, or general cargo ship older than 25 years will be allowed to call in Indian ports. For boxships, offshore vessels, and gas carriers, the age restriction will be 30 years. Any local ships that reach these age restrictions will be deregistered, and their owners will not be able to locally flag any used purchases that are 20 years old or older.
These new regulations are likely to have a significant impact on the shipping industry, particularly on shipowners and operators whose vessels do not meet the new age limits. They may be forced to invest in new ships that meet the age criteria, or they may be unable to continue operating in the Indian market altogether. The regulations are also likely to have wider economic implications, as they may affect the cost and availability of goods being shipped to and from India. If fewer ships are able to call at Indian ports, it could lead to higher shipping costs and longer delivery times for goods.
The move is part of a wider effort by the Indian government to improve safety and reduce pollution in its ports and waters. Older ships are generally considered to be less safe and more polluting than newer vessels, and the government hopes that the new regulations will encourage the shipping industry to invest in newer, more efficient ships. The impact of India’s impending ban on older ships is likely to be significant, given the country’s importance as a hub for seaborne trade in a number of key commodities. According to Xclusiv Shipbrokers, India is responsible for a significant portion of the world’s seaborne traffic in iron ore, coal, crude oil, and oil products.
MarineTraffic statistics reveal that a significant number of ships calling at Indian ports are older than 20 or 25 years, the proposed age limits under the new regulations. In 2022, 3,802 tankers and bulkers constructed before 1998 landed in India. Additionally, there are already 753 ships constructed before 2003 registered under the Indian flag, 133 of which are tankers and 61 bulkers, and thus could be impacted by the new law. This ban on older ships could lead to several consequences. Shipowners and operators may need to invest in newer, more efficient vessels to meet the new age limits or face losing access to the Indian market. This could result in increased costs and reduced profits for those with older ships, as well as potential disruptions to supply chains and trade routes.
Given India’s role as a major player in seaborne trade, any disruptions to shipping could have wider economic implications beyond just the shipping industry. Higher shipping costs or disruptions to supply chains could lead to higher costs for consumers and businesses, as well as potential shortages of key commodities.
Indeed, the new regulations aimed at restricting the use of older ships in Indian ports are part of a broader effort by the Indian government to improve safety and reduce pollution in its ports and waters. Older ships are generally considered to be less safe and more polluting than newer vessels due to technological advancements and stricter environmental regulations. By imposing age limits on ships calling at its ports, the Indian government hopes to encourage the shipping industry to invest in newer, more efficient and environmentally-friendly ships. This, in turn, will not only improve safety and reduce pollution in Indian ports and waters but also contribute to global efforts to combat climate change and reduce carbon emissions.
Furthermore, this move by the Indian government could set an example for other countries to follow. Many countries around the world have been grappling with the issue of reducing carbon emissions in the shipping industry, which is a significant contributor to global greenhouse gas emissions. Age restrictions on ships could be one way to encourage the adoption of newer, more sustainable shipping practices. While there may be short-term challenges for shipowners and operators with older vessels, the long-term benefits of this move could be significant. In addition to contributing to a safer and more sustainable shipping industry, it could also help to protect the environment and improve public health in India and beyond.
