The demand for dry bulk goods is set to increase in the coming months, after weak demand was seen in the industry for a long time, with a strain in fleet growth, according to IHS Maritime 360.
Peter Sand, Chief Shipping Economist at BIMCO in Denmark, said: “The vital commodities, coal and iron ore, are both expected to be in higher demand in the coming months, enhancing owners' and operators' opportunities to find employment for their ships.
“Altogether this should support freight rates, although no large-scale improvement to the fundamental balance is likely to develop.
“On the positive side, the longer-than-normal grain season in South America has benefited primarily the Supramaxes, which apparently defy gravity as being the segment with the highest freight rates, while also facing the biggest increase in fleet size in the dry bulk sector. Additionally, strong steel exports out of China have contributed to higher Supramax fleet use.”
The dry bulk fleet has seen marginal growth during the first nine months. #
39.7 million deadweight tonnage (DWT) has been offset by the demolition of 23.8 million DWT, resulting in a fleet growth of just 2.1%.
Peter Sand concluded: “Continuance of low fleet growth is vital to achieving an eventual recovery and a return of sustainable earnings for the industry.”
Drewry Shipping Consultants previously said that the dry bulk sector is anticipated to grow in 2017.