Fortunes of shipping and shipbuilding industries seem to be linked to each other or at least move in tandem. For nearly three decades in the post World War - II era, both the industries were dominated by European nations and United States. However, high labour costs in the yards of Europe and USA, one of the major determinants in this cost competitive industry, has led to a gradual shift of the center of shipbuilding to these Asian nations over the last two decades. India has a long history and tradition of shipbuilding that can be traced back to the Harappan civilisation. At present, Indian shipping industry constitutes more than 500 vessels with a total grt of around 7.0 million, of which Indian shipyards contribute 11 per cent.
Indian shipyards remain largely insulated from the present boom in shipping and shipbuilding.
Hindustan Shipyard Limited and Cochin Shipyard Limited, two of the country's largest shipyards, have got only one order each - a Handymax and an Aframax vessels respectively. Both their orders are from Shipping Corporation of India, a public sector unit and many market participants believe that the above is not a result of economic consideration. However, Indian shipowners have gone forward and placed sizeably large orders with foreign shipyards. SCI has placed order for 4 Aframax with Hyundai Shipyard, which is due for delivery in 2003. Great Eastern Shipping has placed order for 2 Aframax vessels, one each with Samho Shipyard and Samsung Shipyard and is also planning to place an order for one more Aframax with a foreign shipyard.