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Bimco: Dry bulk sector must adapt to survive

The crisis in the dry bulk sector is so far-reaching that shipowners will have to make significant changes if they hope to survive on the long-term, writes Bimco in a new report. Consolidation and risk management will be key for the dry bulk owners in the new reality, notes the association.

Photo: Golden Ocean

Even though 2016 has so far brought minor improvements and rate increases in the otherwise rock-bottom dry bulk market, the global crisis in the sector is still so severe that the industry will have to adapt to the new reality in order to survive on the long term, concludes shipping association Bimco in a new report about the wider consequences of the dry bulk downturn

"This crisis will affect shipping companies, not only economically and financially, but also sociologically. We will see deep changes in the fundamental structure of the shipping world and in shipping companies, mainly the smaller ones. A new business model will emerge, not just for shipowners but also for brokers, shipyards, financial institutions and other stakeholders," writes Bimco President Philippe Louis-Dreyfus in a comment on the report.

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