Drewry’s outlook on multipurpose shipping market

The global shipping consultancy said there will be minimal aggregate multipurpose fleet growth to 2020, due to increased demolition levels in the multipurpose and competing sectors, combined with the decreased number of newbuilding orders.    Drewry’s latest Multipurpose Shipping Market Review and Forecaster report said the multipurpose shipping market will begin to see the first signs of recovery by the end of 2017, following in the steps of the dry bulk and container shipping markets.
   “Dry cargo demand is weak, but strengthening with multipurpose shipping market share expected to grow at just under 2 percent per year to 2020,” Drewry said.
   The global shipping consultancy also said there will be minimal aggregate multipurpose fleet growth to 2020, due to increased demolition levels in the multipurpose and competing sectors, combined with the decreased number of newbuilding orders.
   The multipurpose shipping sector’s success will not only depend on the segment’s supply-demand balance, but also on the other vessels that compete for breakbulk and project cargo, Drewry explained.
   “Slow growth in supply, alongside better growth in demand, is expected to help multipurpose charter rates in 2017 and beyond, supported by a recovery in the dry bulk market, albeit a slow one,” said Susan Oatway, lead analyst for multipurpose shipping at Drewry. “In particular, the oversupply situation, which has dogged this sector for many years, is expected to level out in the medium term.”