Global Shipping Will See Lower Demand, Says BIMCO

Stronger than expected U.S. performance will help

BIMCO has said the global shipping industry should be ready for lower than expected demand in coming years, World Maritime News reports.

Following the International Monetary Fund (IMF)'s most recent World Economic Outlook, BIMCO said that years of crisis in developed economies are weighing on export markets in developing ones.

"This has led to a lowering of 2015 expected growth more or less across the board.

"Moreover, the burden from the recent years of crisis still haunts primarily the advanced economies, whereas several emerging and developing economies which are running at a higher growth level are been dragged down by poor export markets," it said.

According to the report, major Eurozone economies are now expected to grow very little or even shrink slightly in the case of Italy.

Russia's economy is expected to stay almost flat as western sanctions bite, while India and China forecasts remain in tact.

The U.S. economic recovery has been upgraded giving some respite to the Eurozone outlook and meaning that overall demand should grow, albeit by less than previously hoped, in the box market.

"For container shipping it is positive that the U.S. is now set to grow stronger.

"Even though demand from the Euro Area pulls in the other direction, the sum of the parts are still positive," said Peter Sand, Chief Shipping Analyst at BIMCO.

BIMCO's chief officer for legal and contractual affairs recently told Ship & Bunker that a standard bunker contract, which it is developing, could be ready by the end of this year.