Susan Oatway News

The multipurpose shipping market, including the breakbulk and project cargo sectors, has struggled over the last few years, but conditions are ripe for recovery, according to a recent report from shipping consultancy Drewry. A strong start to 2018 in the multipurpose shipping segment is expected to continue as the sector’s recovery advances further on increasing demand, contracting vessel supply and shrinking threats from competing sectors, Drewry reported in the latest edition of its Multipurpose Forecaster and Annual Review.

Recovering demand for multipurpose shipping combined with improved market conditions for competing sectors will result in rising market share for the multipurpose shipping fleet and a recovery in freight rates in 2018, according to the latest Multipurpose Shipping Market Review and Forecaster report published by global shipping consultancy Drewry. Although China’s plans to curb steel production in an attempt to clean-up the air pollution blighting its cities may well slow steel exports over the short term, the longer term outlook is still positive for the multipurpose and heavy lift sector. The clean-up campaign has resulted in a decision to cut some 50 million tons of steel production from 4Q17.

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.

Following another poor year for multipurpose shipping with further erosion of rates making it the worst market in over 10 years, signs of recovery are now evident with momentum expected to build over the next few years, according to the latest Multipurpose Shipping Market Annual Review and Forecast 2017 report published by global shipping consultancy Drewry. Dry cargo demand is forecast to grow by around 3% in 2018, but within that figure it is the market share available to multipurpose vessels which is more interesting. Drewry estimates that the multipurpose (MPV) share of bulk trades in the peak year of 2007 was about 17%, while the share of general cargo trades was nearer 20%.

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. 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…

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. 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…

The last three months have been some of the worst the multipurpose and project carrier sector has endured in living memory. The breakbulk and project cargo sector remain weak, with little suggestion that volumes will improve significantly until the end of 2017, according to the latest Multipurpose Shipping Market Review and Forecaster report published by global shipping consultancy Drewry. Rates have continued to slide to barely cover operating expenses, as the competing sectors of container ships and bulk carriers have weakened the MPV market ever further in their search for market share. The container lines lost billions of dollars as they filled slots no matter what…

The demand outlook for the multipurpose fleet has not improved since the first quarter of 2016. The breakbulk and project cargo sector remain weak, with little suggestion that volumes will improve significantly until the end of 2017, according to the latest Multipurpose Shipping Market Review and Forecaster report published by global shipping consultancy Drewry. On the other side of the equation, the supply of multipurpose vessels is under control, with an order book equivalent to just 5% of the operating fleet and growth estimated at less than 0.5% per year between now and 2020. However, it is the oversupply of the competing fleets that continues to erode the market share available to the multipurpose sector and in turn any positive growth.

The multipurpose shipping market is not expected to recover until the end of 2017, when it is anticipated that there will be more bulk demand for the Handy vessels and therefore more breakbulk cargoes for multipurpose vessels, according to the latest Multipurpose Shipping Market Review and Forecast 2016 report published by global shipping consultancy Drewry. The last 12 months have been dreadful for the multipurpose vessel (MPV) market with rates at rock bottom and competition for cargo from every angle. Weak demand, coupled with falling commodity prices and the oversupply of tonnage in competing sectors has brought rates down to levels not seen since just after the global financial crisis.

Global shipping consultancy Drewry Maritime Research said the breakbulk shipping market is expected to remain weak until 2017, citing low freight rates and high competition. Although demand growth is expected to recover next year after a very poor 2015, and supply growth is likely to be minimal, competition from other sectors will maintain pressure on the breakbulk shipping market, according to the latest edition of the Multipurpose Shipping Market Review and Forecaster, published by global shipping consultancy Drewry. The IMF has downgraded its expectations for both GDP and trade volume growth for 2015 and 2016. Added to this, container shipping demand recorded its slowest rate of growth in the third quarter of this year since 1979 (excluding 2009).

Although demand growth is expected to recover next year after a very poor 2015, and supply growth is likely to be minimal, competition from other sectors will maintain pressure on the breakbulk shipping market, according to the latest edition of the Multipurpose Shipping Market Review and Forecaster, published by global shipping consultancy Drewry. The IMF has downgraded its expectations for both GDP and trade volume growth for 2015 and 2016. Added to this, container shipping demand recorded its slowest rate of growth in the third quarter of this year since 1979 (excluding 2009).

The Multipurpose sector faces a difficult couple of years, but its long-term prospects are good, according to Drewry Maritime Research’s latest Annual Multipurpose Shipping Market Review and Forecast report. Most owners of Multipurpose ships (MPVs) were fairly upbeat at the start of 2012 and, in spite of weak freight rates, continued to be so well into the first half of the year. However, over the course of the year the market softened further and by the year end most sectors had lost between 3 and 6% off their value for one-year period hire. Susan Oatway, author of the Multipurpose report, explained, “Competition from the container sector becomes ever more aggressive in the face of their dire market conditions.

Drewry’s latest Multipurpose Shipping report reveals that rates have started to firm again and the demand outlook is steady for both breakbulk and project cargo, while the fleet supply is under control. MPV market share continued to rise over 2011 as non-containerised cargo volumes benefited from the rise in general cargo trade. Those volumes are expected to continue to rise throughout the forecast period, however Drewry expects the MPV share to drop from 2014 onwards, due to competition from both the container and Handy sectors. One of the principal contributing factors to MPV demand is general and project cargo where there was a significant increase in volumes during 2011.

Reefer market dynamics continue to change. Drewry Maritime Research have just published their latest Reefer Shipping Market Annual Review and Forecast 2011/12, analysing the industries make-up including; leading operators’ profiles and fleets, perishable commodities, specialised reefer and freezer fleet capacity, containerised reefer vessels, ship economics and forecasts for the future. As the burgeoning containerised reefer market continues unabated, the specialist reefer fleet is feeling the strain. With twelve-month charter rates forecasted to continue sliding, scrapping levels gaining pace and for the first time an empty newbuild orderbook , the industry is changing quickly.

Drewry Maritime Research’s latest Annual Multipurpose Market Review & Forecast details the state of the multipurpose fleet, the demand for the cargo space on those vessels and the outlook for the market they trade in. Project carriers and heavy lift are covered in detail to reflect the anticipate growth in demand. London, UK, 29th March 2011 - The multipurpose sector and in particular the project cargo arena, have experienced a prolonged emergence from the global recession due to the inherent time lag in much of the cargo demand for this sector.

London, UK, September 15 2003: Drewry Shipping Consultants, the world's leading maritime consultants, today announced that its latest report, “Annual Dry Bulk Market Review and Forecast 2003/04”, is now available to purchase. This in-depth review of the market addresses the question: how long will the current high freight rates and even higher levels of optimism continue? The market is currently buoyed by high freight rates and even higher levels of optimism but with the market hitting an all time peak in May 2003 and recording consistently firm levels ever since, the question now is how long will this last? “The forecasts for the global economy over the short term are steady…

London, UK, November 24 2003: Drewry Shipping Consultants, the world’s leading maritime consultants, today announced that its latest report, “LNG Shipping Market Review 2003/04” is now available to purchase. The latest in Drewry’s series of annual reports provides an independent and detailed assessment of the LNG shipping market that has been experiencing discrete, yet substantial, growth since the turn of the century. The report identifies which market trends have been contributing towards this considerable growth and what will enable the market to sustain it. Various factors apply but, since the turn of the century, there has been…