(Drewry) – Many key drivers for dry cargo demand have reported a significant uptick in 2017, resulting in improving conditions for all vessels in the multipurpose shipping sector, according to the latest Multipurpose Shipping Market Review and Forecast report published by global shipping consultancy Drewry.
This year started out well with most demand drivers for the breakbulk sector strengthening from the lowest levels seen in 2016 with the trend forecast to continue in the medium term at least. The exception is the price of oil for which forecasts suggest is unlikely to rise over $55 a barrel for the next few years. Whether that is sufficient to rekindle investors’ interests or not remains a moot point.
The demand for breakbulk commodities and project cargo comes from a wide variety of sources. So it is affected by drivers ranging from crude steel production and oil prices to global GDP and investor confidence, with some being more tangible than the others. Some of these drivers are also a lot more affected by political influences and outside events.
However, there are already signs that the improvement in the competing sectors of bulk carriers and container ships has led to an increase in the market share for project carriers. Some container lines have declared a lessening interest in the more problematic cargoes that these ships are suited to carry. Adding this to a fleet that is largely stagnant – or rather the ‘simple’ multipurpose fleet is declining at about 2% per annum whilst the project carriers with lift capability greater than 100ts are growing at 3% per annum – and this gives an overall fleet growth of just 0.2% per annum for the medium term.
“Whilst we believe that 2017 will be slow, the prospects for the second half of the year and into 2018 continue to strengthen and give rise to our optimism for this sector,” comments Susan Oatway, lead analyst for multipurpose shipping at Drewry.
(Bloomberg) — Constellation Oil Services Holding SA’s bondholders are reaping a windfall due to increased demand for the company’s offshore rigs from Petroleo Brasileiro SA, a sharp recovery for a...
SINGAPORE, April 11 (Reuters) – Spot marine biofuel premiums have weakened further at the world’s largest bunker hub Singapore, weighed by slow demand, market sources said this week. Premiums for the flagship...
SYDNEY/WELLINGTON, April 10 (Reuters) – The U.S. Coast Guard has rejected comments by a Chinese diplomat that its recent boardings of Chinese fishing boats in the Pacific Islands alongside local police are illegal, saying...
April 10, 2024
Total Views: 4554
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.