Subscribe to our Mailing Lists (It's free!)
Sunday, December 3, 2023
SAFETY4SEA
  • Home
  • Safety
    • All
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
    Measures against oil fires onboard

    DNV: Addressing the surge in engine room fires on container ships

    Lessons learned: Consider the weather forecast when selecting a safe anchorage

    Lessons learned: Confined space fatalities due to Hydrogen Sulphide

    American Club animation

    Watch: American Club’s animation emphasizes near miss reporting

    Lloyd's Register

    LR: New provisions on the supervision and administration of vessels under special follow-up

  • SEAFiT
    • All
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
    Prediabetes is a serious health condition: What you need to know

    Prediabetes is a serious health condition: What you need to know

    Stay SEAFiT: Why Musculoskeletal Health matters

    Stay SEAFiT: Why Musculoskeletal Health matters

    Book Review: A role model for ship managers

    Book Review: How technology will transform the work of human experts

    Why we should start talking about mentoring in shipping

    Why we should start talking about mentoring in shipping

  • Green
    • All
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
    center for zero carbon shipping green corridors

    US, Denmark, and Center for Zero Carbon Shipping collaborate on Global South Green Corridors

    AD ports Oil Tankers

    AD Ports Group expands shipping operations with acquisition of specialized oil tankers

    Wartsila 4 vessels

    Wärtsilä secures contract to supply CHS for four new medium gas carrier vessels

    UMAS: Key questions addressing the 2023 IMO GHG strategy

    GMF: The implications of the IMO revised GHG Strategy for shipping

  • Smart
    • All
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
    K Line tests Autonomous navigation onboard RORO

    Autonomous navigation system successfully tested onboard RORO

    pil cargo screening tool

    Danelec expands maritime digitalization with Nautilus Labs’ AI technology platform

    carnival cyber security

    Swedish Club to offer cyber security insurance from 2024

    Shortlisted nominees announced for the 2024 SMART4SEA Awards

    Shortlisted nominees announced for the 2024 SMART4SEA Awards

  • Risk
    • All
    • CIC
    • Detentions
    • Fines
    • PSC Case Studies
    • PSC Focus
    • Vetting
    fire onboard cargo vessel

    RISK4SEA announces CIC Preliminary Results on fire safety (September – October)

    Port State Control (PSC) inspections

    BMA: Key requirements for Port State Control inspections

    Port,Alma,,Australia

    AMSA bans third ship from poor-performing operator

    malaysia detains tanker

    UK MCA: Foreign flagged ships detained in the UK during October 2023

  • Others
    • All
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Reports
    • Shipping
    • Sustainability
    • Videos
    nord stream

    Baltic Exchange: Maritime market highlights 27 November – 1 December

    BIMCO Outlook on Dry Bulk: Muted fleet growth helps maintain market balance

    BIMCO Outlook on Dry Bulk: Muted fleet growth helps maintain market balance

    Mr. Dominguez Velasco

    Arsenio Dominguez Velasco confirmed as next IMO Secretary-General

    canada aerial surveillance

    Gard: IMO’s voluntary speed restriction scheme and WSC Whale Chart

  • Columns
    Career Paths: Nikeel Idnani, PPG and IMarEST

    Career Paths: Nikeel Idnani, PPG and IMarEST

    International Propeller Club: A balance between environmental goals and economic realities is vital

    International Propeller Club: A balance between environmental goals and economic realities is vital

    UK Club: Digitization plays a pivotal role in enhancing fire safety onboard

    UK Club: Digitization plays a pivotal role in enhancing fire safety onboard

    Trending Tags

    • Book Review
    • Career Paths
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Wellness Corner
  • Events
  • Plus
No Result
View All Result
  • Home
  • Safety
    • All
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
    Measures against oil fires onboard

    DNV: Addressing the surge in engine room fires on container ships

    Lessons learned: Consider the weather forecast when selecting a safe anchorage

    Lessons learned: Confined space fatalities due to Hydrogen Sulphide

    American Club animation

    Watch: American Club’s animation emphasizes near miss reporting

    Lloyd's Register

    LR: New provisions on the supervision and administration of vessels under special follow-up

  • SEAFiT
    • All
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
    Prediabetes is a serious health condition: What you need to know

    Prediabetes is a serious health condition: What you need to know

    Stay SEAFiT: Why Musculoskeletal Health matters

    Stay SEAFiT: Why Musculoskeletal Health matters

    Book Review: A role model for ship managers

    Book Review: How technology will transform the work of human experts

    Why we should start talking about mentoring in shipping

    Why we should start talking about mentoring in shipping

  • Green
    • All
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
    center for zero carbon shipping green corridors

    US, Denmark, and Center for Zero Carbon Shipping collaborate on Global South Green Corridors

    AD ports Oil Tankers

    AD Ports Group expands shipping operations with acquisition of specialized oil tankers

    Wartsila 4 vessels

    Wärtsilä secures contract to supply CHS for four new medium gas carrier vessels

    UMAS: Key questions addressing the 2023 IMO GHG strategy

    GMF: The implications of the IMO revised GHG Strategy for shipping

  • Smart
    • All
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
    K Line tests Autonomous navigation onboard RORO

    Autonomous navigation system successfully tested onboard RORO

    pil cargo screening tool

    Danelec expands maritime digitalization with Nautilus Labs’ AI technology platform

    carnival cyber security

    Swedish Club to offer cyber security insurance from 2024

    Shortlisted nominees announced for the 2024 SMART4SEA Awards

    Shortlisted nominees announced for the 2024 SMART4SEA Awards

  • Risk
    • All
    • CIC
    • Detentions
    • Fines
    • PSC Case Studies
    • PSC Focus
    • Vetting
    fire onboard cargo vessel

    RISK4SEA announces CIC Preliminary Results on fire safety (September – October)

    Port State Control (PSC) inspections

    BMA: Key requirements for Port State Control inspections

    Port,Alma,,Australia

    AMSA bans third ship from poor-performing operator

    malaysia detains tanker

    UK MCA: Foreign flagged ships detained in the UK during October 2023

  • Others
    • All
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Reports
    • Shipping
    • Sustainability
    • Videos
    nord stream

    Baltic Exchange: Maritime market highlights 27 November – 1 December

    BIMCO Outlook on Dry Bulk: Muted fleet growth helps maintain market balance

    BIMCO Outlook on Dry Bulk: Muted fleet growth helps maintain market balance

    Mr. Dominguez Velasco

    Arsenio Dominguez Velasco confirmed as next IMO Secretary-General

    canada aerial surveillance

    Gard: IMO’s voluntary speed restriction scheme and WSC Whale Chart

  • Columns
    Career Paths: Nikeel Idnani, PPG and IMarEST

    Career Paths: Nikeel Idnani, PPG and IMarEST

    International Propeller Club: A balance between environmental goals and economic realities is vital

    International Propeller Club: A balance between environmental goals and economic realities is vital

    UK Club: Digitization plays a pivotal role in enhancing fire safety onboard

    UK Club: Digitization plays a pivotal role in enhancing fire safety onboard

    Trending Tags

    • Book Review
    • Career Paths
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Wellness Corner
  • Events
  • Plus
No Result
View All Result
SAFETY4SEA

BIMCO: Rising Capesize deliveries put further risk to market balance

by The Editorial Team
May 3, 2019
in Shipping
baltic exchange

Above image is used for illustration purposes only

FacebookTwitterEmailLinkedin

Demolition of dry bulk ships in the first four months of 2019 was 120% higher than in the same period of 2018, an increase mostly driven from demolitions of Capesize ships, up from 1.1 m DWT between January and April 2018 to reach 3.4m DWT in the first four months of 2019.

The 18 Capesize ships demolished this year, sailed away from the poor market conditions faced by these larger vessel sizes since 25 January 2019, explained Peter Sand, BIMCO’s Chief Shipping Analyst.

In the almost three months since then, Capesize earnings have remained below USD 9,000 per day, falling to a low-point USD 3,460 per day on 2 April 2019.

Capesize earnings have averaged USD 8,079 per day since the start of the year, a loss making level with BIMCO estimating that a Capesize ship needs to earn around USD 15,300 per day to be able to cover daily costs.

RelatedNews

BIMCO Outlook on Dry Bulk: Muted fleet growth helps maintain market balance

BIMCO applauds Pakistan’s entry into the Hong Kong Convention for safer ship recycling

In 2019, the Capesize market has faced several shocks, including the dam collapse in Brazil and bad weather in Australia, but it also faces more long term challenges such as the falling Chinese iron ore demand.

Due to the falling demand for commodities traditionally carried by Capesize ships, limiting fleet growth will become even more important if freight rates are to be profitable. For that reason, rates of demolition of Capesize ships in 2019 and 2020 are essential to addressing the fragility of the market balance,

…says Peter Sand, BIMCO’s Chief Shipping Analyst.

Despite the increase in demolitions from last year, the Capesize fleet grew in the first four months of 2019, due to the delivery of

  • 5 Valemax (380,000 – 400,000 DWT),
  • 6 VLOCs (200,000 – 350,000 DWT),
  • 1 standard Capesize (140,000 – 190,000 DWT ) and
  • 1 baby Capesize ship (100,000 – 130,000 DWT), amounting to 3.8m DWT entering the already crowded market.

In addition to this, deliveries scheduled for the rest of 2019 as well as 2020 and 2021 paint a bleak outlook for the market balance.

A further 6 Valemax, 46 VLOCs, 17 standard Capsizes, and 2 baby Capes are slated to be delivered in 2019. A mammoth 24.8m DWT (3 Valemax, 79 VLOCs, 20 standard Capsizes and 8 baby Capes) has been ordered to be delivered in 2020, and deliveries of 8m DWT in 2021 has already been ordered.

In 2018, deliveries of Capesize ships amounted to 14.3m DWT.

Because of delays and cancellations, BIMCO expects that around 11.1m DWT will be added to the fleet in the rest of the year, followed by 20.4m DWT in 2020. Demolition activity may rise somewhat with the upcoming implementation of the IMO’s 2020 sulphur cap and Ballast Water Management convention. Even if new regulation leads to more demolition, the market for large dry bulk ships is likely to face continued pressure as there is little potential for substantial growth on the demand side,

…says Peter Sand.

Prospects for dry bulk ships smaller than Capesize, are less concerning, as the market conditions are more stable.

Despite some disruption to trade lanes due to the trade war, the markets for these smaller ships face fewer disruptions on both the demand and supply side.

BIMCO: Rising Capesize deliveries put further risk to market balance
BIMCO: Rising Capesize deliveries put further risk to market balance
Tags: BIMCOdry bulk shippingmaritime tradeshipping markettrade war
Previous Post

English Channel will have to wait for its first LNG-fueled ship

Next Post

Major flooding is expected in Mississippi river during May-June

Related News

X-Press Feeders orders six methanol dual-fuel containerships
Shipping

BIMCO Outlook on Containers: Supply to outpace demand in both 2024 and 2025

November 30, 2023
OceanPal invests in methanol-ready chemical tankers
Shipping

BIMCO Outlook on Tankers: Growing oil market imbalances drive tanker improvements

November 29, 2023
eastern pacific
Shipping

BIMCO: Coal shipments to advanced economies down 17% so far in 2023

November 23, 2023
strait of hormuz
Security

BIMCO and industry associations develop transit corridors for Persian Gulf security

November 20, 2023
BIMCO and ICS introduce procedure for in-water cleaning certification
Pollution

BIMCO and ICS introduce procedure for in-water cleaning certification

November 20, 2023
BIMCO proposes database for scrubber washwater discharge restrictions
Pollution

BIMCO proposes database for scrubber washwater discharge restrictions

November 20, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Explore more

No Result
View All Result

Recommended

Shortlisted nominees announced for the 2024 SMART4SEA Awards

Shortlisted nominees announced for the 2024 SMART4SEA Awards

November 23, 2023
singapore border measures

Do you know what GT and DWT measure in a ship?

November 10, 2021
MARITIME EVENTS

Explore

  • Safety
  • SEAFiT
  • Green
  • Smart
  • Risk
  • Others
  • SAFETY4SEA Events
  • SAFETY4SEA Plus Subscription

Useful Links

  • About
  • Disclaimer
  • Editorial Policies
  • Advertising
  • Content Marketing
  • Contact

© 2021 SAFETY4SEA

No Result
View All Result
  • Safety
    • Accidents
    • Alerts
    • Loss Prevention
    • Maritime Health
    • Regulation
    • Safety
    • Seafarers
    • Security
  • SEAFiT
    • Intellectual
    • Mental
    • Physical
    • Social
    • Spiritual
  • Green
    • Arctic
    • Ballast
    • Emissions
    • Fuels
    • Green Shipping
    • Pollution
    • Ship Recycling
    • Technology
  • Smart
    • Connectivity
    • Cyber Security
    • E-navigation
    • Energy Efficiency
    • Maritime Software
    • Smart
  • Risk
    • CIC
    • Detentions
    • Fines
    • PSC Case Studies
    • PSC Focus
    • Vetting
  • Others
    • Diversity in shipping
    • Maritime Knowledge
    • Offshore
    • Ports
    • Reports
    • Shipping
    • Sustainability
    • Videos
  • Columns
    • Opinions
    • Book Review
    • Career Paths
    • Industry Voices
    • Interviews
    • Maripedia
    • Maritime History
    • Resilience
    • Seafarers Stories
    • SeaSense
    • Wellness Corner
  • SAFETY4SEA Events
  • SAFETY4SEA Plus Subscription

© 2021 SAFETY4SEA

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Disclaimer.