Baltic Dry has changed to such an extent that the index no longer serves as a proxy for the dry bulk sector overall, says Bimco Chief Analyst Peter Sand, who thus takes down an institution in the shipping sector.
A surge in scrapping activity is not enough to compensate for the wave of new capesize ships that is finding its way to the already-strained market for the large dry bulk vessels, warns shipping association Bimco.
Bimco criticizes the IMO for using "unrealistically high GDP growth projections" in its predictions for future transport needs – and thus greenhouse gas emissions. The industry should base its actions on "realistic projections," says the shipping association.
Bimco and Braemar ACM both project that trade disputes and a weak balance weigh down the dry bulk market and the Baltic Dry extraordinarily. "Right now it's a strained market all around," Norvic Shipping CEO Peter Borup tells ShippingWatch.
Despite a truce, the trade war between the US and China has impacted three otherwise good quarters on the bulk market and created major uncertainty, says Nordea in an analysis. Bimco warns that the recovery is "fragile."
På trods af en "våbenhvile" har handelskrigen mellem USA og Kina spoleret tre ellers gode kvartaler på tørlastmarkedet og skabt store usikkerheder fremadrettet, vurderer Nordea i en analyse. Bimco advarer om, at opsvinget er "skrøbeligt".
The trade war between the US and China means that the US is selling significantly fewer soy beans to the Chinese than in the past. Brazil has increased its export, but the biggest surprise is to be found in a different market, says Bimco.
Marshall Islands, Bahamas, Bimco and Intertanko feel misunderstood and are now trying to argue their case after facing tough criticism of the proposal to introduce an "experience-building phase" in connection with the 2020 sulfur regulations. However, the proposal has already divided maritime nations.
Both Maersk and Torm are against the proposal for an "experience building phase" in connection with the global sulfur cap from 2020. This would create "uncertainty" and could risk "delaying the implementation" of the regulation, says Simon Bergulf, head of regulatory affairs at Maersk.
A month before a critical IMO meeting concerning the 2020 sulfur regulations, strong industry stakeholders have called for a preliminary "test phase," a move that generates doubts about the adoption of the ban against carrying sulfur fuel on board ships, say critics. (This article has been corrected and updated on Sept. 19 at 11:05 am CET)
More new ships and less scrapping combined are now creating the scenario in which dry bulk carriers would least like to find themselves. The influx of new, large valemaxes could make 67 capesize vessels unemployed within 24 months.
Several bunker suppliers and traders are offering an untraditional service of financing scrubbers for shipowners if they return the favor by doing business with them. An exciting development, Bimco analyst Peter Sand tells ShippingWatch.
2017 exceeded all expectations in the dry bulk market which finally caught a break. The positive development prompted shipowners to order a significant number of new vessels. So far, this is not a cause for concern, but just a few ships could change that, says Bimco.