In the first quarter of this year, the bulk shipping market was not slow in the off-season. With the intensification of the Russian-Ukrainian crisis, although the BDI index repeated, it still rose nearly double from February. Thanks to the inefficient turnover of shipping capacity, the dry bulk shipping market is expected to perform well this year.
Analysts pointed out that although the BDI index has been slightly lowered recently, inflation has pushed up the price of raw materials, and the conflict between Russia and Ukraine has also stimulated short-term market performance. Wheat, rice, and corn are the main grains supplied by Russia and Ukraine. The war has led to soaring grain prices in exporting countries, while some Middle East grains have been reduced due to climatic factors, and due to the Russian-Ukrainian war, they have to turn to farther imports. Drive the freight rate upwards, further limit the market capacity, and support the freight rate of small and medium-sized ships.
In 2021, 411 global bulk carriers will be delivered, excluding demolition and delayed delivery, a net increase of 338 for the whole year, and the supply will increase by 2.8% compared with 2020. At present, the orders for bulk carriers are 6.5%, which is still a record low, and the capacity is reduced. Demand recovered moderately. According to Clarksons Dry Bulk Trade Outlook data in February 2022, the expected growth rate of bulk carrier capacity in 2022 is only 2.1%, but the growth rate of dry bulk shipping ton-mile demand is estimated to reach 2.5%, and the market capacity will continue to be in short supply in 2021. scene. The second quarter will enter the peak season for grain harvest, and the dry bulk shipping market may perform well this year.
From: Sohang.com