Dry Bulkers in An Overwhelming Disappointment
Dry bulkers have been an overwhelming disappointment with the year coming to an end, while on the other side of the coin we have the tanker market that has not only kept its positve momentum but managed to outpace what most had expected thanks to low crude oil price, says a study by Allied Shipbroking Inc.
As much as both of these markets have inevitably been influenced and even driven by the market demand conditons, it is always important note and compare the supply side issues which is one of the key ways the industry as a whole influences the balance and in effect rates themselves.
On the one hand you have the dry bulkers, with the Supramax and Panamax showing this to a greater extent, which have tried to cap the fleet growth while demand in trade con#nually dictate for even slower figures.
A valiant effort had been made on the scrapping and newbuilding fronts, yet as all things point, not enough for how the market currently stands. A range of 28.87 percent to 47.15 percent drop in freight rates and 26.62 percent to 30.47 percent in asset prices are testament to this.
On the side of the tankers messages have been more varied. On the one hand freight rates have improved by a range of between 67.80 percent up to 424.33 percent, asset prices have shi'ed only marginally in comparison reaching a range of between 3.32 percent and 15.16 percent, showing in part the strict conservative approach that still exists with regards to future prospects.
All this through a period of not only be"er demand figures, but also with a fleet growth closely matched to that of the dry bulkers. The only exception and note here is that we will need to be cau#ous of the fast paced orderbook growth being noted as all this could turn south in a similar manner to what we saw in the dry bulkers.
So with all eyes now set on 2016, it looks as though we still have hurdles to overcome but don’t let it get you down just yet, as it is the holidays a'er all.
