Page 52: of Maritime Reporter Magazine (March 2018)

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Bulker

Ton Mile Demand

Statistics & Analysis Courtesy of VesselsValue.com

The dry bulk markets have been off are seeing counter seasonal peaks and to a promising start for owners in 2018 returns are pushing new ? ve-year highs. after seeing stronger year in 2017. Rate This could drive rates in 2018 substan- strength is determined by the major bulk tially higher.

cargoes of iron ore, coal, and grain, all The demand generated by the Chinese of which have contributed to rising de- economy remains critical to the dry bulk mand for dry bulk carriers. The demand market, and any substantial shift could for minor bulk cargoes, which can be cause a surprise swing to the upside very important to short term rate volatil- or downwards. Forecasts of Chinese ity, appears to be edging upwards over a growth are inherently unreliable due to strong global economic situation. the ability of the government to exercise

In the Capesize Market orders re- command authority over key infrastruc- mained depressed during the down cycle ture and energy decisions.

in rates over the past two years. Interest Asset values across all dry bulk segments in newbuilds has risen during the periods have increased over the past year and of strength in TCE returns, but monthly should continue to appreciate throughout totals have remained below the peak the year. Prices are just now approaching levels in 2013. Despite the lower cargo their median value since 1992, indicating volumes normally seen in February, we that upside potential remains. 52 Maritime Reporter & Engineering News • MARCH 2018

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