IME(I) Mumbai Branch Hosts Insightful Webinar on “Shipping Markets and Data”

The Institute of Marine Engineers (India) Mumbai Branch successfully conducted a thought-provoking webinar on the topic “Shipping Markets and Data” on 30^th November 2024. The session featured an expert presentation by Dr. Satya Sahoo, Assistant Professor of Shipping Management and Finance at the World Maritime University, Malmö, Sweden.

The event commenced with opening remarks by Sonali Banerjee, an Executive Committee (EC) member of the IME(I) Mumbai Branch and the session moderator. Following this, the Chairman of the IME(I) Mumbai Branch, David Birwadkar, delivered a warm welcome address, highlighting the significance of the topic in today’s dynamic maritime industry. Birwadkar also introduced Banerjee as the moderator, emphasising her trailblazing role as India’s first female marine engineer.

Banerjee then introduced the distinguished speaker, Dr. Satya Sahoo, whose illustrious academic and professional background includes a Ph.D. in Finance, an MSc in Maritime Affairs and a Bachelor’s degree in Marine Engineering. Dr. Sahoo, an alumnus of DMET, also has sailing experience with Fleet Management, making him exceptionally qualified to deliver insights on shipping markets.

Key Highlights of the Webinar

Dr. Sahoo provided a detailed analysis of the shipping industry’s multifaceted nature, emphasising its characteristics:

1. International Scope:
   • A truly global industry governed by extensive international legislation.
   • Operates with numerous economic agents across borders, making it integral to world trade.
2. Capital-Intensive Nature:
   • High costs of entry and low barriers to exit, with varying entry thresholds in different sub-sectors.
3. Competitiveness and Efficiency:
   • A market-driven, cost-effective, and environmentally efficient mode of transport.
4. Derived Demand:
   • Freight rates are contingent on the transportation demand for commodities and goods.
5. Volatility and Risk:
   • The industry’s inherent cyclicality, seasonality, and exposure to macroeconomic fluctuations pose significant challenges.

Dr. Sahoo elaborated on the technical considerations for shipping assets, covering dry bulk, wet bulk (tankers) and container markets. He shed light on the commitment versus flexibility dichotomy in market operations and the unique characteristics of tramp and liner services.

In discussing shipping macroeconomics, Dr. Sahoo highlighted the interplay of demand and supply, noting how factors such as global economic growth, commodity trade and regulatory changes influence market dynamics. He also discussed the “Four Shipping Markets”:

1. Freight Market
2. Recycling Market
3. Sale and purchase Market
4. Newbuilding Market

Dr. Sahoo underlined the importance of understanding fundamentals, macroeconomic drivers and timing for successful investments in the shipping industry.

The webinar emphasised the role of shipping as the backbone of globalisation, enabling specialisation and cost-efficient transportation of goods. Dr. Sahoo demonstrated how the industry facilitates international trade by overcoming geographic and economic barriers.

The session concluded with a lively Q&A segment, where attendees sought clarification and shared their perspectives on various topics. Esteemed dignitaries those who were present included Dr Malini Shankar, Dr B.K.Saxena, etc and they too had some relevant queries and appreciating comments to make. Sonali Banerjee provided a concise summary of the discussion, highlighting the takeaways for maritime professionals and stakeholders.

The Vice Chairman of IME(I) Mumbai Branch, Ranjit Singh, delivered the vote of thanks, expressing gratitude to Dr. Sahoo for his enlightening presentation and the audience for their active participation.

IME(I) Mumbai Branch is committed to conducting such webinars and seminars regularly to touch upon relevant topics highlighting meaningful insights on ones which are probably less delved upon as compared to certain other topics and this was one in the series of such topics.