Multipurpose Shipping Freight Rates to Improve by End 2017
The multipurpose shipping market will see the first signs of recovery by the end of 2017, following in the steps of the dry bulk and container shipping markets, according to the latest Multipurpose Shipping Market Review and Forecaster report published by global shipping consultancy Drewry.
According to MANA, Dry cargo demand is weak but strengthening with multipurpose shipping market share expected to grow at just under 2% per year to 2020. Demolition levels are up in both the multipurpose and competing sectors, whilst newbuilding ordering has waned, which will result in minimal aggregate multipurpose fleet growth to 2020.
The future market prospects for the multipurpose shipping sector are not only dependent on the supply-demand balance for that segment, but also on the other vessels that compete for breakbulk and project cargo, in particular Handy bulk carriers and container vessels.
The new International Maritime Organisation (IMO) regulation on Ballast Water Management is likely to have a small effect on demolition levels in the multipurpose sector, and even more so for the bulk carrier sector.