ao link
Filter content by area of interest
Handling Equipment/Systems
Ports & Terminals
Transport & Distribution
Materials & Commodities
Storage
Processing
ICT & Telecoms
Civil Engineering
Mining
Environment
Safety & Security
Business
 View all Topics View all Topics A-Z
More View all Topics View all Topics A-Z

You are viewing this article with our compliments. 


register  or  login  to manage your newsletter preferences and to prevent this message from appearing.

Rate recovery expected later in 2015

Strong trade growth, moderating fleet development and deployment of new fuel efficient vessels are expected to lead to a recovery in dry bulk shipping rates later in 2015.
Linked InTwitterFacebookeCard
This summarises some of the finding of the latest edition of the Dry Bulk Forecaster, published by shipping consultancy Drewry.

“We expect rates to remain under pressure through the first quarter of 2015,” said Rahul Sharan, Drewry’s dry bulk shipping lead analyst. “However, thereafter earnings will recover as modern fuel efficient ships gain employment at higher rates relative to older ships. This is one of the reasons why average charter rates recovered in 2014 compared to 2013, despite continuing capacity pressure.”

Modern vessels command higher rates due to their superior fuel efficiency and environmental credentials, relative to older units. Drewry estimates that since 2011 the average age of the dry bulk fleet has declined from 12 to 9 years (see graph) which is one of several factors that has helped to support charter rates in an otherwise weak market.

Drewry estimates that the dry bulk shipping trade increased 8.3% in 2014, supported by strong iron ore demand and a 20% leap in grain trade. New vessel deliveries declined in 2014 as owners deferred orders in light of a weak market which limited 2014 fleet growth to 5.3% compared with 6.2% in 2013. Future capacity additions to the dry bulk fleet are likely to be checked by the conversion of some existing dry bulk orders to tankers, and continued slippage with new deliveries.

“We expect to see some acceleration in 2015 deliveries despite a moderating order book, thanks largely to increased slippage from 2014,” added Sharan. “However, despite the uncertainty surrounding the global economy, we anticipate that 2015 will be another year in which dry bulk demand outpaces supply. This more favourable capacity outlook coupled with the influx of modern fuel efficient ships points to a recovery in the dry bulk shipping market in the second half of 2015.”

Linked InTwitterFacebookeCard

You may also like these related articles...

BAMIN wins bid to operate FIOL railway in Brazil

Bulk transhipper breaks size record in UAE

Transnet seeking to annul locomotive contracts

Upswing or ‘super cycle’ for dry bulk equities?

Electric, modular hybrid bulk carrier design

Certified carbon-neutral freight service begins

Linked In
Twitter