Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Dry-Bulk Shipping Conditions Likely to Weaken, Platou Says

Feb. 15 (Bloomberg) -- Conditions in the dry-bulk shipping market are likely to weaken this year as the supply of ships expands faster than demand, according to RS Platou Economic Research, a unit of Norway’s largest shipbroker.

The fleet of commodity carriers will swell by 11 percent to 12 percent this year, about double Platou’s forecasted expansion of 5 percent to 6 percent in seaborne commodities trade.

“The fleet will grow at a higher rate than tonnage demand, resulting in a further weakening of the market fundamentals,” Bjorn Bodding, a senior partner at Platou Economic Research, said in a report sent by e-mail today. “Any potential upsides appear limited.”

The 14-member Bloomberg Pure Play Dry Bulk Shipping Index, measuring the share prices of companies hauling raw materials, declined 26 percent in the past year. The Baltic Dry Index, a measure of freight rates, fell 41 percent over the same time.

To contact the reporter on this story: Alaric Nightingale in London at anightingal1@bloomberg.net

To contact the editor responsible for this story: Alaric Nightingale at anightingal1@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.