Bulker success may continue through 2018

Bulker success may continue through 2018

21-12-2017 14:00:00

The coming year will most likely be a good one for bulk carrier companies, because the fleet seems to increase very slowly, while the demand will grow very fast, Bimco writes. But the progress is fragile and can be shortened by various factors.

The reason for the expectation of a good year for bulk carrier companies is among other things based on the growth of Chinese imports of 5 per cent in 2017. This will continue through the coming year.

”You should be aware that 2018 may not be as great as 2017 and earnings may not be visible until 2019, unless the ongoing increase in the market is taken good care of,” Bimco's chief analyst Peter Sand writes.

He says, that the level of fleet growth and the extension of surplus capacity scrapping play a significant role in the 2018 market.

"Unfortunately, we can see decreasing activity in relation to scrapping, and the cargo fleet continues to grow, which can prevent improvement in the market. While nominal growth in the fleet in 2018 is expected to be around 1 per cent focus have to be on low speed, "writes Peter Sand.

The reason for this is, that if the number of ships increase, it could reduce the expected progress in the market – or even worse, go in the opposite direction, according to Bimco's chief analyst.

Source: Bimco / Maritime Denmark

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