Shipping market to strengthen in 2020

Jan 24, 2020 at 08:05 AM CST
IHS Markit expects the dry bulk market is on the long-term recovery cycle, primarily driven by supply normalisation. The dry bulk fleet is expected to grow 3% in 2020, compared to 3.8 %in 2019. Considering the fleet is currently expected to have a scrubber retrofitted, fleet supply contractions on an annualised level are expected to continue with 1 - 2% of the dry bulk fleet offline in 2020. Iron ore trade looks promising with Brazil set to produce more iron ore in 2020 after the tragic dam accident last year. Coal is an uncertain area where political decisions on environmental issues will determine the demand. IHS Markit expects coal trade to grow about 1% in 2020 with strong India and ASEAN demand despite structural decline in European coal demand.

Jan 24, 2020 at 08:05 AM CST

IHS Markit expects the dry bulk market is on the long-term recovery cycle, primarily driven by supply normalisation. The dry bulk fleet is expected to grow 3% in 2020, compared to 3.8 %in 2019. Considering the fleet is currently expected to have a scrubber retrofitted, fleet supply contractions on an annualised level are expected to continue with 1 - 2% of the dry bulk fleet offline in 2020. Iron ore trade looks promising with Brazil set to produce more iron ore in 2020 after the tragic dam accident last year. Coal is an uncertain area where political decisions on environmental issues will determine the demand. IHS Markit expects coal trade to grow about 1% in 2020 with strong India and ASEAN demand despite structural decline in European coal demand.