It seems unlikely that there will be enough dry bulk to fill the many dry bulk ships on the market in the years to come, and it is on that background that a new analysis by Drewry concludes that the "capesize misery continues."
"Activity languished in the Asian market ahead of New Year holidays in China. To add to the problems, weather disruptions in Queensland in Australia put a further dent on demand in the segment. The ex-tropical cyclone Oswald has disrupted coal shipments from Hay Point, Dalrymple Bay and Gladstone. Major railroads that transport coal from the mines to the ports have been closed by severe weather. Many producers including Xstrata, Rio Tinto and Anglo American have suffered from the bad weather. This caused Capesize freight rates to dip further, which filtered through to the Drewry Hire Index. Prospects look promising for the iron ore market after the Lunar New Year prospects. Restocking after the holiday will create demand for Capesizes," writes Drewry.
More from ShippingWatch
In the drama surrounding the merger between tanker majors Euronav and Frontline, one of the arguments from Euronav’s biggest shareholder, the Saverys family, is that the merger will pull Euronav in the wrong direction on the green agenda. Euronav tells ShippingWatch that the company rejects this criticism.