Posts Tagged ‘India

05
Sep
11

India Imports Up

If there is any doubt why India is entering into expansion mode with their ports, then last weeks numbers of gross imports will help put that into perspective. Asia’s third largest economy cracked the scales with an increase of 31%  in the April/May, compared to the same period last year.

Container Ship

Imports Soar in April May

Crude oil imports continued to increase along with edible oil and pulses (peas, beans and lentils), according to official figures. India imports close to four fifths of its oil. According to country’s Commerce ministry sources, India imported 13.58 million metric tons of oil in July, up by 2.6 percent that is up by 3.13 million barrels a day.

Large developing nations clamoring for the black gold could drive up prices and slow down development but I argue whether or not Middle Eastern or other big exporters of oil would let prices to too high, in favor of increased economic development.

The country’s imports of pulses and edible oil, went up by 24.7% in the April-May period this year. India’s import of pulses, shot up by 38.6%

Items such as food grains, automobiles, milk and beverages fall in the sensitive category and the import of these goods is monitored by the government to see if there is any adverse impact on the domestic industry.

During the first two months of the current fiscal year, the import of items such as alcoholic beverages and spices also increased by 60.4% and 30.5%, respectively. However, imports of food grains, fruits and vegetables, tea and Coffee contracted by 81.3%, 1.9% and 42.6%.

Coffee Drinkers are Getting Their’s Local

Since 1950 the total area of planted coffee in India has exploded. For the Arabica bean it has increased over 300% and for the Robusta bean, it has grown over 1000%. More and more young Indians are taking to the drink than ever before. With a very low average age (65% of the population is under 35 and it’s expected that the average age in 2020 will be 29 years old) in India and a more affluent generation coming onto the scene, many of them are taking to the cafe’s to relax, carry on business, or just get away.

Demand is Calling

Last month, we wrote on the blog about a new planned investment of $60 billion to expand and renovate Indian ports. This investment is part of a  bigger $1 trillion dollar initiative aimed at bringing the ports, roads and infrastructure in the country up to speed by the year 2020.

Leif Eskesen, of economist at HSBC Holdings Plc said,“If there isn’t enough capacity, you lose time and it adds to cost.” India is working on fixing this. An industrial expansion and high food prices, resulting from the combined effects of the weak 2009 monsoon season and inefficiencies in the government’s food distribution system, fueled inflation which peaked at about 11% in the first half fo 2010, but has gradually decreased to single digits following a series of central bank interest rate hikes.

There’s a lot that can be done with a trillion dollars. It looks like India s up to the task. All eyes are on Asia right now. India and China have a lion’s share of the focus but there are many other emerging markets that are pushing container demand around our region. At Pacific Tycoon, we supply them with the necessary containers to transport the cargo. Contact us to see how you can invest in shipping container, earn guaranteed money, and free up a portion of your volatile stock portfolio for a safer alternative.

Image:ProvidenceEdu

Source: IndiaCoffee, CommodityOnline

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01
Sep
11

Shipping Industry Rebound

There’s a lot of good news if you’re looking to make containers a part of your investment portfolio. Demand is Asia, most notably India, China, Singapore, are all rising. Development of these countries and those around them, is at record levels. In two separate reports we found this week, consumption in Asia is the main driving force behind the push from poverty to the acquisition of wealth and material goods that just a few years ago was a far stretch for many of the citizens of Asia. It’s amazing how fast things change in the world we live in today. Countries are pivoting quickly with the help of advanced technology, communications, and increased levels of education.

Containers

Industry in China is Growing

China Merchants Holdings, a diversified conglomerate with big investments in shipping and ports reported first half results earlier this week that were double the same period last year, thanks to a revaluation gain on its investment in Shanghai International Port Group and the appreciation of its office building in Sheung Wan, reported the South China morning Post.

The company also reiterated what we talked about last month about the moving of industry inland in search of cheaper labor. On the mainland, ports at Shenzhen West reported a 0.6 per cent fall in first-half container throughput due to a slowdown in exports in the Pearl River Delta, compared with 12.9 per cent growth on average in mainland ports.

“The slowdown in growth in Shenzhen is a long-term problem as the trend for factories to move out is irreversible, but Shenzhen still has a geographical advantage,” said Vice Chairman Li Jianhong.

Due to the influx of business moving inland, handling fees at Shenzhen port were frozen in the first half, compared with a five to eight per cent rise in handling fees in the Yangtze River Delta and an up-to-15 per cent rise in the Bohai Rim (also known as the Bohai Economic Rim or BER, which is the economic hinterland around Beijing and Tianjin).

This migration of business is rapidly developing the country and bringing new jobs to an unprecedented number of people in rural areas, who just a few years ago were moving to the coastal areas in search of work.

Growth is Driving India to Prosperity

In India the shipping industry is rosy, too.

The Indian shipping industry recorded an increase of over 20 per cent in business in the last financial year and in the first quarter of this year, which is expected to continue, said Shreyas Shipping Chief Financial Officer Vinay Kshirsagar.

Almost 90 percent of India’s trade by volume (70 per cent in terms of value)  is conducted by sea. With the largest merchant shipping fleet in the developing world, India’s maritime sector is set to grow to a size of $80 billion by 2020. The expected volume handled in 2020 would be approximately 1.7 billion tonnes.

While demand drivers like trade growth and geographical balance of trade (which determines the length of haul required) are very positive, the supply drivers like new ship building orders, scrapping of existing tonnage, etc, also indicate a good future for the Indian shipping and logistics sector. This is further given a boost by the privatization of ports and the strong thrust on infrastructure, said Nicky Mason, managing director, Informa India.

India is the world’s second most populous country and their consumption is rising along with their incomes. India is investing big money in its ports to calm inflation and keep the demand that is driving it up at bay. With big money being spent on ports and infrastructure, India will continue to be one of the biggest players in the region.

Growth in Asia is good for Container Owners

Owning containers is easy. Managing them is a different story. That’s what Pacific Tycoon does best. We are located in Hong Kong, in the heart of Asia, with the skill, experience, and knowledge to put your containers to work and start earning you a good income. It all boils down to the most simple of economic laws: supply and demand.

If there is sizeable demand for a product or service you can charge more. Demand in Asia is sky-rocketing and our containers owners are getting paid very well, to let us manage their investment. Contact us and let us show you how you can diversify your investments by owning containers and lease them to the very companies that supply the region with the necessary goods to do business.

Image: TopDealFinder

Source: HellenicShipping, CargoNewsAsia

19
Aug
11

India Gets Serious About Inflation

Demand is a funny creature. A healthy dose of it keeps the gears of the economy rolling smooth. Too much of it, drives up the cost of goods and services and can grind the wheels to a halt. Not enough demand and the same thing happens. Moderation is the key. It’s hard enough moderating your own personal vices yet alone those 1.2 billion people, in the world’s second most populous country. Despite the difficulties that come with managing that moderation, India is tackling the problem with a new round of planned investments in its port to the tune of US$60 billion dollars.

The Social Network

A Trillion is Cool!

In a line made famous by the movie based on Facebook, one of the lead characters told the young founder that a million isn’t cool. A billion is cool. If that’s true then the planned investment in Indian ports and other transportation outlets well surpasses that.

The $60 billion dollar investment in the ports is part of Prime Minister Manmohan Singh’s planned $1 trillion revamp of choked transport and power networks to achieve faster expansion.

The initiative must transcend a history of insufficient investment, which has left the world’s most populous democracy trailing a Chinese economy now more than three times larger.

“If there isn’t enough capacity, you lose time and it adds to cost,” said Leif Eskesen, an economist at HSBC Holdings Plc.

Companies Want Action

Thermax’s, a power equipment manufacturer, managing director M. S. Unnikrishnan says “It takes 45 days transportation for incoming cargo for me and similar time when I send it to my customers overseas.” He was also quoted as saying,  “The Chinese can possibly do it in seven days.”

This adds costs and reduces efficiency and India is taking action. The Indian government is relying partly on investment by companies such as DP World Ltd. and AP Moller-Maersk to lift capability at ports to 3.1 billion tonne by 2020 from 963 million tonne in 2010.

After implementation of the building this will enable greater imports of consumer good like, electronics, raw materials, and oil, which in turn dampens inflation by better feeding consumer demand. India has 13 major ports overseen by the central government and 187 smaller harbors that account for 90% of exports by volume. India imports more than it exports and thus had a trade deficit of almost $105 billion in the last fiscal year.

They Keep Coming

At 1.2 billion people and growing, India is the second most populous country in the world and that figure is only getting bigger. They are projected to capture the title of most populous, overtaking China by 2025. In reality, that’s not that far into the future and arrives just after the total of the ports investment money will be put into action by 2020. Perfect timing.

In the meantime, Pacific Tycoon is here to help you wade through the waters of container ownership and leasing that puts your money to work by leasing your containers to the world’s largest companies that are shipping to India, China and other fast growing economies in Asia. With the world financial markets and developed countries are suffering due to mismanaged debt, demand is Asia is pumping money into the hands of our container owners. Contact us and let us show you how easy a direct investment into the Asian economies can be.

Image: TheSocialNetwork

Source: HellenicShipping, Wikipedia

15
Aug
11

East India Ports Prosper

India and China are getting cozy when it comes to trade. Both of the nations are boasting huge growth numbers, not just in their GDP’s but in port and container traffic as well. Up until recently, the West coast ports were the one’s getting all the business. As trade with China increases, the trend of West Coast dominance is quickly eroding.

Ports of IndiaHere Comes the East

Since China overtook the US as India’s largest trading partner last year the Eastern ports are getting busier.

Ports on the west coast have traditionally handled at least twice the container traffic of their eastern brothers. That trend is reversing as India’s merchandise trade with Asian nations grows faster than that with the West. The eastern ports are closer to where the action in Asia and therefore are facilitating their growth.

Western ports’ share of capacity is estimated to drop to 66% in the year 2014 from 77% in fiscal 2010, according to audit and consulting firm KPMG India. In comparison, the share of eastern ports will rise by as much as 11 percentage points in the same period to 34%.

It is likely that the west coast/east coast shift will also help ease congestion at western ports. With increased container traffic, comes increased business opportunities in all sectors of the economy. Development of these eastern ports and the surrounding cities will get a huge dose of economic benefits.

To cater to India’s increasing trade with East Asian nations such as China and Japan, and other Asia-Pacific nations, new capacity as well as port infrastructure has been developed towards the east coast, said Gagan Seksaria, associate director (transportation and logistics) at KPMG India.

Hard Assets for Infrastructure

Besides rising trade with China, the demand for coal to fuel power projects in eastern India has also led to growth in the east coast ports, said shipping secretary K. Mohandas. India may need to import as much as 150 million tonnes of coal a year by 2015 to fuel power plants, according to industry estimates.

With the increase in rail connectivity, a lot of the coal imported through western ports will be routed through eastern ports and moved by train to meet demand in the hinterland, Seksaria said.

“The rebuilding of Japan after the earthquake as well as the resultant sluggishness in domestic steel production is expected to generate further demand for import of construction-related cement and steel,” he added.

Benefits Abound

In April, industry lobby Federation of Indian Export Organisations (FIEO) said bilateral trade between India and China was likely to have reached $60 billion (Rs.2.7 trillion today) in the fiscal year ending March 31st from $42.4 billion in 2009-10. It is likely to reach $100 billion in the next four years, according to a commerce ministry estimate.

“The export basket of India is diversifying in the context of financial crisis in the US and European markets,” said Ramu S. Deora, president of FIEO. “India is exporting more to China, Thailand, Indonesia, Taiwan, Korea and Japan.”

As these countries and more of the developing one’s of Asia quickly climb up the ladder of economic activity, India’s Eastern ports and cities will continue to thrive.

West coast ports are getting saturated and growth in the northern hinterland raises the requirement for gateway ports to ship out cargo, said Hemant B. Bhattbhatt, senior director at audit and consulting firm Deloitte Touche Tohmatsu India Pvt. Ltd.

“Moving cargo through land to west coast ports from the northern hinterland is also becoming unviable,” he said.
Several countries such as Singapore, Australia and South Korea that did not figure prominently among India’s trading partners in the early part of the last decade are now among the country’s top partners, according to data from the commerce ministry.

In the Heart of Asia

Our position in Asia give us the location and the strength to help you profit from container ownership. Pacific Tycoon is here to help you get into the container industry and pay you very well. When you buy containers and then lease them to us, we both facilitate the boom that is happening in Asia and we all benefit. Don’t just be a consumer in the global economy. Participate in its growth through container ownership. It’s a simple process. Give us a call and let us show you how easy it can be.

Image: IndiaEducation

Source: Hellenic Shipping

10
Aug
11

Profitting from the Shipping industry

Many people are aware of the profits and potential of the shipping industry to make good money on their investable assets, yet many people don’t have the slightest idea how to participate in it. That’s not a slap in the face. It’s true that, like the Oil sector, the majority of shipping is done by a few very wealthy companies. The enter into the shipping business you need some very deep pockets, friends in high places, and very easily, even some government backing as well.

Port MontrealWhat are the options?

It’s easy to get discouraged or even stop looking once you realize that the ports are run by government funding and massive corporations. New companies like India’s Ports Global, are using these very same methods and to the average person, there don’t seem to be other avenues than the stock market to participate in the growth of the shipping industry.

And who wants to even think about the stock market anymore? More often than not, the same factors that discourage people from looking further into the shipping industry influence the stock market the exact same way. We’ve quoted it before and we’ll do it again. Take a look at the movie, “The Inside Job“.

The same people who lead the world, its leading companies, and leading educational institutions are the same one’s that make the policies, structure the boards, and write the curriculums and books that students study. In turn, the way that the world and the financial markets function are all an effect of a very few elite individuals that use their own greed and selfishness to manipulate things in their favor.

A Great Article

Here’s a link from an article entitled “Why Global Shipping Industry May Produce a Wave of Profit”. I read on the topic I wanted to share with you. I’ll quote bits and pieces from it and comment accordingly.

“To get a quick idea of the enormity of worldwide shipping activity, you need only look at the U.S. trade numbers.”

The numbers here will give you a huge knee-jerk reaction. It’s one thing to think that the shipping industry posts big numbers. It’s another thing to see it in black and white.

“In March 2011 alone (the last month for which complete figures are available at the time this post was published), the United States imported $220.8 billion worth of petroleum, other raw and agricultural materials, and finished products from foreign countries. And more than 90% of that total entered by ship.”

To break it down even further for you, that’s 198.72billion dollars worth of goods that entered the country in one month.

“At the same time, the United States sent $172.7 billion worth of manufactured goods, grains, and assorted other materials abroad.”

“Because of differences in reporting standards and fluctuating currency values, worldwide totals are harder to grasp, but the industry’s major trade group, International Chamber of Shipping, estimates that marine shippers transported over 7.7 billion tons of cargo in 2008, covering more than 32 trillion miles and generating roughly $380 billion in freight charges alone.”

“And that was in a year hit midway by a global recession.”

A global recession that has proven to be one of the most heinous in almost a century. It’s clear now, that more than 3 years later, the world and especially the United States is still fighting with all its might.

“Responsible for those shipping totals is a worldwide fleet of more than50,000 merchant ships registered in more than 150 countries and employing more than 1 million crew members. Because of liberal laws and tax incentives, Panama and Liberia play host to the most registered merchant vessels. Ships flying those country’s flags accounted for nearly 300 million tons of cargo in October 2010 alone.”

Own Shipping Container and  Direct Line to Demand

That’s a lot of ships. One thing they are short of is containers to move the goods and service that go on them. With demand in Asia and Africa spiking to unprecedented levels, more and more people are crawling out of poverty and building better lives for themselves.

Owning shipping containers gives you direct participation into this industry and puts you far way from any speculation that is done through the suits and ties on Wall Street or any other world-wide exchange. Demand calls for shipping containers which you lease out to paying customers. Your containers transport goods from port to port all the while providing you with a handsome monthly income.

Stay away from the stock market and the massive speculation that goes on there. Owning shipping containers gives you direct participation, growth, and piece of mind (through insured assets) and pays you very well. Contact Pacific Tycoon and let us show you how are clients are making double-digit returns and sleeping well at night.

Image: CanadianManufacturing
Source: SeekingAlpha

09
Aug
11

India-China Shipping Lane Brings More Containers Along

Just when you thought you couldn’t possibly hear any news from India, they’ve sprouted another vein of commerce that’s pumping goods straight from the heart of Asia.

india-mobile

Demand is Calling

On July 24th it was reported that  Japanese Shipping Company,Kawasaki Kisen Kaisha (“K” Line), will launch a new dedicated service called CIX-2 between Asia and the Indian Sub-Continent from August 10. In business, if customers and demand are calling then there will be an answer and subsequent action taken. India is pushing boundaries with its growth along side China right now and a dedicated line was the answer.

The new service, will run with six 2500-2800 TEU vessels and offer a fixed-day weekly sailing.

The ports involved are Xingang (China), Qingdao (China), Shanghai (China), Ningbo (China), Singapore, Tanjung Pelepas (Malaysia), Port Klang (Malaysia), Nhava Sheva (India), Karachi (India), Colombo (Sri Lanka), Port Kelang, Tanjung Pelapas, Singapore, Xingang.

All of these are ports in Asia that we have reported about during the last month that are moving serious amounts of cargo/containers for their respective countries.

“K” Line presently operates another weekly service called INDFEX calling at Nhava Sheva port. The new service will double sailing frequency for Nhava Sheva and newly add Xingang and Qingdao as direct calling ports.

Asian Explosion

There’s no hiding the fact that Asia is booming. Imagine a hundred plus years ago, going back in time and handing Wyatt Earp and Doc Holiday, Apple iPhones. That’s basically what is happening in some developing countries in Asia and Africa now. India now has over 600 million mobile subscribers.

Add to the fact that new infrastructure and development costs through massively more efficient technology, increased knowledge and speed of development is knocking down barriers it took the western world decades to conquer, are coming down in a fraction of the time.

Steve Jobs for President

Apple now has more cash than the US government.

The Federal Reserve reported last year that nonfinancial companies had socked away $1.84 trillion dollars in cash and other liquid assets as of the end of March 2010. That’s up 26% from a 2009 and the largest-ever increase in records going back to 1952. Cash made up about 7% of all company assets, including factories and financial investments, the highest level since 1963.

That money is coming from cost saving that are made by exporting business overseas. That investment in overseas markets, like India, China, Vietnam ( the list is very long) is also putting record numbers of cash in the hands of these residents and driving up their buying power along with their thirst for the same material goods that many of them work on day in and day out.

At Pacific Tycoon, we’re in the business of managing containers. The same containers that ship brand name products from port to port and supply the distributors with them to sale to their customers. We help you lease containers to these very same Fortune 500 companies and pay you very well. Contact us to let us show you how you can get involved.

Image: ITGrunts

Source: CargoNewsAsia, WallStrettJournal

05
Aug
11

India Ports Global: Coming Soon

When you think of busy ports and successful countries that run these operations, there are two that pop in to most people’s mind. Dubai Port World and the Port of Singapore have a rich heritage and platinum reputation in the maritime industry. As their success in their own countries and the more recent addition of foreign contracts flourish, the Port of Singapore has been hired by the Chinese and DP World is working the British and the U.S., India is looking to get in on a piece of the Global action as well.

India, Chennai

India on the Rise

As reported on WorldMaritimeNews last week, the Indian government is helping float a new global shipping company, aptly named India Ports Global, that will set up the company in August. India Ports Global will invest in and acquire stakes in overseas ports and container terminals.

The company will be allowed by the government to issue tax-free bonds to help with financing.  “The finance ministry has given consent to us to authorize any entity to raise the bonds. We feel Indian Port Global is the best choice,” said an official . Barring Kolkata and Cochin port trusts, along with major ports such as Jawaharlal Nehru Port Trust, Mumbai Port Trust, Paradeep, Mangalore and Kandla – are also expected to chip in with the initial contribution.

The purpose of India Ports Global is to invest in ports with large traffic to and from India, which means into interest in ports in south-east Asia and Australia . Officials said an international presence for India is required amid its growing influence in international trade, which was estimated at $600 billion in the last financial year.Exports are projected to double by 2014 and close to 90% of India’s trade is done through marine lines.

The Government is Beginning to Showcase India’s Potential

Oil companies are on a global hunt to meet the country’s growing energy requirement . The story is similar in case of the coal sector where a dedicated company, Coal Videsh , is adding to the private sector’s acquisition binge. Officials said that a combined effort from the ports is required since they would not be able to compete with the global might of giants like Dubai Ports, PSA International and Maersk.

Setting up of Indian Ports Global is contingent upon cabinet approval. “We will engage a consultant on how to go about this plan. It will be a small structure like a corporate body with professionals,” a senior ministry official said.

Either way, the wheels of progress are in motion and the budding country is happy to show off its stuff. All investments of this magnitude bring smiles to the faces of those in the shipping container industry. It’s very easy to see the demand driving these investments in ports and the subsequent economic growth that is steam-rolling through Asia.

Contact us today to let us show you how we can turn this news into a profitable venture for you.

Image: PortStrategy

Sources : WorldMaritimeNews, TheTimesOfIndia




Gain unearned income. Own shipping containers and lease them to us. We contract with companies who need to ship materials.

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