KUALA LUMPUR: The shipping industry’s outlook for 2019 and beyond remains uncertain after experiencing a relatively buoyant climate last year, thanks to the improvement in the dry bulk market driven by better freight rates across all shipping segments.
The dry bulk shipping demand is projected to grow by 2.5% this year, mainly driven by agricultural products and minor bulk commodities, whereas the global dry bulk fleet is projected to grow at 2.8%.
Malaysian Bulk Carriers Bhd (Maybulk) chairman Datuk Ahmad Sufian@Qurnain Abdul Rashid said the dry bulk market had improved last year as freight rates were better than in 2017, and significantly above the historical low levels in 2015 and 2016.
“This was attributed to an overall improvement in seaborne trades of dry bulk commodities, while supply fundamentals of dry bulk shipping remained reasonably healthy,” he said in the company’s annual report.
He attributed the growth in the dry bulk segment to the commodity demands particularly from China while a limited fleet supply growth provided the main platform for freight rate improvement across all the dry bulk shipping segments. — Bernama
Did you find this article insightful?
100% readers found this article insightful