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April 13, 2018

Drewry expects breakbulk shipping market to recover this year

Global shipping consultants Drewry report in their latest edition of the Multipurpose Forecaster and Annual Review report the multipurpose shipping has started 2018 on a confident footing and is forecast to recover further on rising demand, contracting vessel supply and lessening threats from competing sectors.

The multipurpose shipping market, which comprises both breakbulk and project cargo sectors, has struggled over the last few years but Drewry says conditions are now ripe for recovery.

Dry cargo demand is growing, with a number of drivers reporting improving conditions, whilst the multipurpose fleet is contracting as older, smaller, less heavy lift capable tonnage is weeded out.

"This year has started with renewed optimism and it is Drewry's belief that the market has finally turned that corner," said Drewry's lead analyst for the multipurpose sector Susan Oatway. "Rate rises are never stratospheric in this sector, but we believe a steady growth of around 2-3% per year is possible over the forecast period."

"Some 80% of all newbuildings over the last five years have heavylift capability, and at least 70% of the orderbook has this capability. The project carrier fleet is growing, but it will be some time before it reverses the decline in the overall multipurpose fleet," added Oatway.

Source: Drewry