Americas News
Grain Shippers Switch Boxships For Bulkers
Grain shippers are taking advantage of the current downturn in the dry bulk sector, with players in the U.S. who may in the past have chosen containers to move their product, switching instead to using bulkers for more cost savings, The Western Producer reports.
"There was no way that the bulk business was competitive with the container business into the Asian market,” said Stephen Lofberg, President of Montclair Marine Services.
“I feel sorry for the container guys because bulk is back.”
A combination of cheaper bunkers and falling rates have reportedly made bulkers the better choice, with Panamax rates having reportedly fallen to around $10,000 per day from a high of $90,000 back in 2008.
The fall is largely due to overcapacity and low demand in the bulk sector, with ships now having a harder time finding cargo as the predicted Chinese demand failed to emerge.
According to reports, less that one percent of U.S. grain this year has been moved by container, compared to a more usual three percent.
Earlier this year, Ship & Bunker reported that bulker scrapping in the first quarter of the year hit record highs as analysts predicted continued difficulties in the segment.
