Page 27 - Annual Review 2021 full

Annual Review 2021

In terms of the analysis of deficiencies in Indian and also as part of the “India delegation” whenever
ships during General Examination, Flag state the opportunity has been provided.
inspections and the DGS report identified following
areas attributed to the deficiencies observed. The reduction of carbon emissions and measures
for achieving IMO objectives for the same have
Areas with more than 2% deficiencies been in the forefront of discussions amongst
stakeholders in international shipping at IMO.

The Indian administration has adopted amendments
to MARPOL Annex-VI vide Resolution MEPC
328(76). It has also issued MS Notice 7 of 2021
specifically for the requirements of ships complying
with Energy Efficiency Existing ship lndex (EEXI)
and Operational Carbon Intensity Indicator (CII)
and to provide instructions regarding revised
compliance requirements for reduction of carbon
intensity in respect of these amendments, entering
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International Environment
World Economy
In 2020, the pandemic disrupted the world economy,
2. Port reception facilities cutting manufacturing activity and consumption.
The Draft Merchant Shipping (Provision of Waste However, the impact was not as severe as initially
Reception Facilities at Indian Ports 2021) Rules feared and the maritime transport sector managed
2021 are under consideration of the government to navigate through the crisis. In 2020, maritime
and comments on areas of possible concerns and trade increased as a proportion of global GDP, with
difficulties that would be faced once the rules are an increase in the maritime trade-to-GDP ratio as
implemented have been submitted to the DGS. the pandemic induced a shift in consumer demand
from services to traded goods. However, this is likely
3. I.V. Act - 2021 to be short lived as demand patterns normalize and
The Inland Vessels Bill (Act) 2021 has been passed spending continues to rebalance towards services.
in both houses of the Parliament. Consequently
Rules for IV Vessels are being framed for In 2020, global GDP declined by 3.5 per cent – the
common application across all states of India largest downturn for 70 years. The greatest impact
and stakeholders’ consultation for the same is in was felt in the services sector – in particular in
tourism, travel and hospitality. For maritime trade,
progress.
the plunge in flows was mitigated by the boost in
demand from government stimulus packages.
4. Revamping of the Merchant Shipping
(MS) Act - 1958 In 2021, the story is still driven by COVID and related
The process of drafting bill for replacement of risks but the positives have also gained attention
Merchant Shipping Aact 1958 has been under way like the vaccine rollout, recovery in growth, and
since 2016. The Merchant Shipping Bill, 2020 i.e. supply and demand pressures that are currently
the bill drafted to replace MSA 1958 is awaiting disrupting trade logistics.
Parliament approval at the time of writing this review.
Seaborne Trade
5. DG Shipping e-governance The total trade volumes of seaborne trade declined
The DGS has been steadily migrating its 3.8% and reached 10.7 billion tons in 2020.
administrative work to online mode including UNCTAD expects world maritime trade to recover
issuance of electronic certificates to ships. INSA has by 4.3% in 2021.
been providing its views to expedite the process of
e certification of all ship certificates for the benefit The growth in maritime trade volumes are expected
of all stakeholders. to moderate and expand at an annual rate of 2.4%
between 2022 and 2026.
6. Meetings at IMO
The short-term outlook for maritime trade is positive,
Due to the pandemic, all IMO meetings are being
held virtually. INSA has been actively participating in however, risks and uncertainty remains.
the preparatory meetings held by the administration

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