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The Dry Bulk Freight Market
Outlook to 2010 A review of the dry bulk shipping market by Northfield Trading Company Limited in collaboration with Galbraiths’ Shipbrokers Limited Price:
GBP875 for which you will receive:
• The Report which includes detailed forecast tables in electronic (pdf) format that will be sent after payment is received.
To order this
new report please
complete the form below
International dry bulk freight rates have always been highly volatile within certain parameters that were largely understood. Whilst there was a reasonably steady annual demand for some of the major trades there was also a small percentage of spot demand in others that had the ability to distort the market, albeit temporarily.
These elements of volatility were supported by many other factors including intangible influences such as sentiment, but more importantly, the decisions taken by both owners and operators on when to build more ships and/or keep older vessels operating. This second issue is not unique to the shipping industry
and is common across all areas of commerce, but when prices are high there is a tendency to build too much capacity as well as keeping older vessels afloat. This often results in more ships being delivered to the market at a time when freights may well have passed their peak. This, in
turn gives rise to a collapse in freight rates that takes sometime to recover, usually supported by a
much reduced building programme. There is an almost fatalistic view when this happens, with an owner believing that it isn’t his decision that is wrong but everyone else involved in the business.
The end result, however, is an over adjustment that accentuates the
volatility. This report looks at the relatively short term to 2010, analysing in depth the issues that drive the dry bulk freight market. Identifying and understanding the drivers will be at the core of this report with the ultimate purpose being to forecast a mid/base case forward view of the market taking all these influences into account. In making this base case forecast the report will also look at the sensitivities that affect the drivers so as to give both a high case and a low case forecast within which the market would be expected to
operate. The report, which runs to about 65 pages is published by Northfield Trading Company Limited and will be available from
1 August 2006
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