Asia/Pacific News
Singapore Dry Bulk Market Might Not Be "So Bad" in 2015
Precious Shipping (Precious)'s Managing Director, Khalid Hashim, Wednesday said certain factors were pointing to a "not so bad" year for dry bulk carriers in 2015, Platts reports.
Speaking at a press conference ahead of this month's Sea Asia 2015 conference, part of Singapore Maritime Week, Hashim said the industry was challenged particularly by overcapacity and slowing demand for raw iron ore in China.
But he, as well as other industry leaders, are said to have struck a note of "cautious optimism" for Singapore's maritime future.
"Companies are focusing on driving efficiencies and managing costs to weather these challenging conditions," said Hashim.
"One of the ways they are doing this is by scrapping or selling older assets (vessels), a move which also allows them to generate more cash."
In addition, he said that ship orders had ground to a halt, reining in some fears of continuing overcapacity in the dry bulk fleet which he said had grown 12 percent between 2009 and 2012.
Those shipowners who have ordered new ships have asked for postponement of delivery or conversion to other vessel types, he said.
In February, Scorpio Tankers announced it had agreed with shipyards to convert dry bulkers, which its sister company Scorpio Bulkers had ordered, into tankers.
In addition, Hashim said some shipyards have gone bankrupt meaning "hundreds" of expected ships will never hit the market.
In March, BIMCO said the dry bulk sector would recover slightly in the second quarter of 2015, but rates would remain below $10,000 per day.
