Greek shipping: Its role in strengthening the bilateral relations between Greece and India

With its global “superweapon”, shipping, Greece attended the historic meeting between Prime Ministers Kyriakos Mitsotakis and Narendra Modi. The president of the Union of Greek Shipowners, Melina Travlos, next to the two prime ministers, confirmed the geostrategic role of the great shipping of the Greeks and in the case of India and the effort of the Indian Economy, the fifth in the world, to reach the heart of Europe with its products.

In recent decades, Greek shipping has been the superweapon of Europe. It ensures the operation of the supply chain, food sufficiency and energy autonomy, stated a few days ago at the annual report of the Union of Greek Shipowners, Ms. Travlos and her assessment was confirmed at the meeting of Greek and Indian businessmen last week in Athens, in which the president of the Union of Greek Shipowners also participated.

“The strategic cooperation between Greece and India is of mutual interest for the international development prospects of the economies of the two countries. Greek shipping as a leading force in the conduct of international trade can be a key axis for the strengthening of trade relations between Greece and India” stated after the meeting Mrs. Stuttering.

“Bridge”

Greek shipping is de facto the “bridge” that will connect the Indian not only with the Greek but also with the European economy.

Greece is the largest shipping country in the world as Greek shipowners control 21% of the global merchant fleet in terms of dwt. In the last ten years the total capacity of the Greek merchant fleet, consisting of 5,520 ships, has increased by 50%.

Main pillar

Greek shipping is a key pillar of the transport of essential goods, as it represents (in terms of dwt), 31.27% of the global oil tanker fleet, 25.32% of the global dry bulk fleet, 22.65% of the global fleet of Liquefied Natural Gas (LNG), 15.79% of the global chemical and petroleum product fleet, 11.46% of the global LPG fleet and 8.92% of the global container fleet.

Greek shipowners are mainly active in bulk/tramp shipping, the sector specializing in the transport of commodities such as grain and other agricultural products, oil and natural gas, iron ore, chemicals, coal, fertilizers and forest products.

These are products that interest Indians. For example India is the second largest importer of coal. Also after the geopolitical developments such as the Russia-Ukraine war contributed to the increase in maritime trade of crude oil products from India to Europe and the rest of the world.

And in the trade of containerized products, where of course China remains the largest exporter, India is increasing its share along with Vietnam, gaining as much share as China is losing, notes the United Nations Conference on Trade and Development (Unctad).

Due to the negative experience from the pandemic as well as geopolitical developments, many companies have chosen to source materials from many regions and some industries in Europe and India, supported by government efforts to achieve strategic autonomy, are already redefining their business models, he adds. the UNCTAD.

India’s new openings which have intensified after the coronavirus pandemic, cannot be served only with its commercial fleet (1,076 ships) as according to Unctad its share in the global shipping industry is only 1.19% (in terms of dwt ) when Greece which is the biggest power in the world  as it controls as mentioned 21% of the world’s merchant fleet. Indian-owned merchant fleet ranks 20th in Unctad’s relative ranking.

Finally India is among the biggest powers in the field of ship breaking and recycling. Indian scrap yards are in first place in the dismantling of tankers while it should be noted that India has ratified the International Maritime Organization convention on ship recycling.