BIMCO’s Chief Shipping Analyst, Peter Sand, talks about the recently published analysis of the dry bulk market – the “Road to Recovery” in an interview at BIMCO House. According to Sand, effective action by the dry bulk sector towards recovery needs to be taken by everyone in the sector.
https://www.youtube.com/watch?v=4SM7jllENE8
The interview took place at BIMCO House on 10 June 2016 with Grant Hunter. The report examines how the dry bulk market may become profitable in 2019. The analysis refers that with a poor outlook of a 2% growth in demand for the foreseeable future, the dry bulk industry cannot rely on demand growth to save it from its current crisis; therefore owners need to focus collectively on what they can influence, the supply side.
BIMCO has developed a “zero supply side growth” scenario, this requires shipowners to neutralise the delivery of new ships every year by scrapping an equal amount of capacity from the existing fleet. This will stop supply side growth from 2017 onwards as presented in the graph below.
You may view the analysis by clicking below
Source: BIMCO
