2018 Is The Year Of The Bulk Carrier Market

- Feb 26, 2018-

BIMCO recently said that by 2018, the foundation of the dry bulk shipping industry is facing another year of balanced improvement and is now in a good year of opportunity.


According to BIMCO data, the bulk shipping market is expected to be the slowest in the fleet since 2018 in 2018, while the steady growth in demand is expected to improve the bulk shipping industry.glenflange


In January this year, bulk carriers delivered 4.8 million dwt, the highest level in 10 months. At the same time, the disassembly capacity of bulk carriers was 700,000 dwt. Therefore, a large amount of delivery capacity appeared on the bulk shipping market. Despite the slowdown in fleet growth, more new orders from Asian shipyards have also been signed by shipowners and investors around the world.


BIMCO said the bulk shipping market needs to be cautious in the first quarter of this year due to falling demand for seasonal goods. In terms of freight rates, the bulk shipping market showed a good momentum for most of the second half of 2017, which peaked on December 12, 2017, when Capesize was the highest average daily rent for bulk carriers $ 30475.glenflange


As of the end of January 2018, the freight rates of various types of bulk carriers were at the breakeven level, but they did not make a profit. Although Clarkson Research CRSL data shows that overall shipping demand for the bulk transport market in 2017, up 5.1%, benefited from a substantial increase in imports from China. But BIMCO believes that this strong demand will not repeat in 2018.


BIMCO said the forecast for the growth of overall demand for bulk transportation by 2018 is around 2-3%, including many uncertainties. This is not just the impact on the amount of traffic, but also the factors that influence the distance traveled.


BIMCO added that with the fleet growth of 1.4%, the bulk shipping market is still expected to improve.