Multi-Year Bull Market for Dry Cargo, Forecasts Shipping Strategy Ltd.
The good start to 2021 for bulk carriers is set to continue beyond this year, according to Shipping Strategy Ltd, the UK based shipping market research and consultancy business.
Shipping Strategy MD, Mark Williams, formerly Head of Research at Braemar and Affinity, has made the prediction in the company’s Dry Bulk Outlook Quarterly.
“As the public health emergency starts to come under better control, the global economy should rebound in 2021. We predict a supercharged recovery in Emerging Asia GDP which will drive firm demand growth for the bulk carrier markets” says Williams. “Meanwhile, the fleet supply outlook is benign; net fleet growth this year may be only half the 3.6% of 2020.”
With this report, Shipping Strategy announces its new partnership with Oceanbolt, a Norway-based data-as-a-service company delivering real-time intelligence for the dry bulk commodities trading and shipping market.
Williams says of the partnership, “I am really happy to have Oceanbolt as our data partner. Their work hugely improves the accuracy of our demand analysis, providing better inputs to our forecast model. Our new fleet activity forecasts, based on Oceanbolt’s data and our analysis of the close correlation between emerging market GDP and bulk carrier freight outcomes, suggests that a new bulker market cycle has begun.”
Shipping Strategy forecasts rising average earnings in 2021 of nearly USD 24,000 a day for Capesizes, and nearly USD 17,000 a day for Supramaxes, with the market set to rise further to a peak in 2024, “assuming the relationship between bulk carrier activity and regional GDP differences is maintained” says Williams.
Niclas Priess, Co-founder of Oceanbolt, commented: “We are proud to have partnered with Shipping Strategy. This partnership represents an important milestone of what we are trying to achieve as a company: delivering high-quality dry bulk data in a frictionless manner. At Oceanbolt we believe in man plus machine. We see strong synergies from delivering data to and partnering with some of the leading dry bulk shipping economists.”
Founded in 2018 by Managing Director Mark Williams, Shipping Strategy Ltd provides market analysis covering dry bulk, containers, gas and tanker shipping as well as the marine fuels, and ports industries, Shipping Strategy Ltd also provides feasibility studies, due diligence and strategy consulting to a global customer base of governments, NGOs, industry associations, ship owners, charterers, investors and insurers. Mr Williams is a course director at Lloyd’s Maritime Academy, a co-founder of Diversity Study Group and a contributing editor to Ship.Energy, the shipping and bunkering decarbonisation tracker.
Source: Shipping Strategy Ltd.