Feasibility of bulk shipping investment - investment into the supramax segment with time horizon 2023-2027

• Main Author: Ma Yin Mon Myint
• Other Authors: -
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2022
• Subjects: Engineering::Maritime studies
• Online Access: https://hdl.handle.net/10356/158307
• Institution: Nanyang Technological University

This report examines the freight market prospects for a Supramax bulk carrier during the time segment between 2023 to 2027 in the perspective of a shipping investor. As such, providing insights as to whether investors should consider investing in this sector. The purpose of this study is to establish whether or not it is feasible to invest in a Supramax bulk carrier based on historical patterns and market analysis of the maritime sector. The demand and supply factors that affect the shipping market is first analysed and will be used to determine the effect on freight rates. Freight rates are good indicators of the market sentiment, as such a forecast of freight rates within the investment horizon would provide a good indication on whether or not to embark in this investment. After analysing the interactions between the demand and supply factors, it is concluded the overall factors are favourable towards the freight rates and the freight range is between $ 13,827.58 and $ 30,098.74 for the timecharter equivalent of the average 10 BSI routes. Hence in this Volume, it can be concluded that the Supramax sector seems to be a lucrative segment to invest in solely looking at the freight rates. However, we will have to look at volume 3 to conclude overall investment feasibility whereby the Supramax sector will be evaluated using a variety of asset usage scenarios.