Bulk Terminal Market to Gain Over 40% Growth by 2023
New research has suggested that the global bulk terminals market will grow 42.5% from $5.20 billion in 2016 to reach $7.41 billion by 2023 — a CAGR of 5.1%.
Stratistics MRC, a market intelligence company, stated in its report that it expects the growth to take place due to rising demand from industrial output, increasing usage of bulk commodities and its affordability in emerging countries.
However, it warned of disruption to growth from the downfall of coal consumption and business reforms as developing countries take a cleaner energy approach.
China is expected to experience a huge growth rate followed by North America due to rising demand of grain bulk terminals in the regions.
In a new Port Technology technical paper ‘A New Dawn for Dry Bulk’, Rahul Sharan, Lead Research Analyst at global shipping consultancy Drewry, stated that China’s growing imports from Brazil will increase tonne miles by more than three times compared with its imports from Australia.
Sharan explained: “There has been a shift in China’s imports from Brazil in late 2016 and early 2017.
“With Brazil’s S11D plan set to mine iron ore at a substantially low cost, there could be an increased shift towards sourcing iron ore from Tubarao.
“The shift in trade will bring more cheer to dry bulk owners.
“Apart from iron ore, coal has played a key role in the resurgence of rates so far this year and is likely to play a major part in any further recovery.
“However, Chinese coal imports have remained volatile in the past and any definitive dependence on China might not help.
“A lot of hope hinges on Indian coal imports and a resurgence in the US coal story, which could support vessels trading in the Atlantic Basin.”