Despite recent adjustments, the long-term prospects for bulkers appear bullish, as shifts in global trade patterns and government strategies present opportunities for growth, reports VesselValue.
In its latest Shipping Market Outlook – End Q3 2023 Forecast Values, VesselsValue reported the bulker industry is expected to witness a positive outlook, driven by various factors shaping the global trade landscape.
Real estate sector
China’s real estate sector, after experiencing a decline, is now charting a new path towards consistent and sustainable growth, thanks to the latest government strategy, noted Veson. This shift is seen as a boon for the iron ore trade, with historical inventory levels potentially encouraging increased stockpiling.
Bauxite trade
Highlighting the recent developments in the bauxite trade, China is increasing imports from Guinea following Indonesia’s export ban.
Although short-term economic growth has been hampered by high inflation and increasing interest rates in the West, a recovery in western economies and investments in green energy infrastructure could potentially benefit bulker demand in the long run.
Dry bulk supply fundamentals continue to favour owners, as uncertainty surrounding future fuels and high newbuilding prices have deterred owners from ordering new vessels.
The conclusion from the VesselValue report is that the dry bulk carrier industry faces a positive outlook, with various global trade dynamics and strategic shifts offering potential growth opportunities.
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Source : Riviera
