Outlook for the dry bulk shipping market
The objective of this dissertation is to present an outlook of the dry bulk shipping market within the next decade. The research gives an overview of the past and present performance of the dry bulk freight market. Based on the evaluation of market performance and driving forces of demand and supply...
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| Format: | Final Year Project |
| Language: | English |
| Published: |
2014
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| Subjects: | |
| Online Access: | http://hdl.handle.net/10356/60631 |
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| Institution: | Nanyang Technological University |
| Language: | English |
| Summary: | The objective of this dissertation is to present an outlook of the dry bulk shipping market within the next decade. The research gives an overview of the past and present performance of the dry bulk freight market. Based on the evaluation of market performance and driving forces of demand and supply fundamentals, a discussion on the future projection of dry bulk shipping industry will be presented.
The author taps on fundamental analysis, which studies variables affecting the dry bulk freight market. In this research, a study of developments in world economy, demand trends of three major dry bulk commodities, average distance, and fleet capacity will be carried out.
Future seaborne dry bulk demand will continue to be driven mainly by China and India to facilitate the booming industrial production rates and infrastructure developments. However, the prevailing oversupply has overshadowed the positive outlook for seaborne dry bulk demand.
There are positive signs of an improving fleet utilization after record high values of demolition activities and continued slow steaming to cut operating costs. After 5 years of cyclical decline in physical market, the dry bulk market has bottomed out and shipowners can remain optimistic about the outlook for following years.
As many ship owners are operating below costs and also facing difficulties in financing ships, it is recommended for them to maintain high liquidity on hand in the current dull market. To remain competitive, for shipowners who can afford, it is advisable to invest in building of more fuel efficient greener fleet. |
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