Global dry bulk market outlook remains positive according to Drewry

According to the latest edition of the Dry Bulk Forecaster, published by global shipping consultancy Drewry, outlook remains positive for the dry bulk market and charter rates are expected to improve from current levels, driven by moderate increases in vessel demand and low growth in vessel supply as a result of restrained new ordering and a thin orderbook.

Drewry adds that uncertainty surrounding the dry bulk market, driven by trade wars could, nonetheless, slow down the increase in charter rates. A game of tariffs and counter- tariffs is underway with U.S. at the centre of most of the tussles and it seems unlikely that trade wrangles will end soon.

But trade wars might not have a direct negative impact on dry bulk trade. The US constitutes a small share of China’s total steel product exports and as far as Chinese soybean imports are concerned, Drewry estimates that volumes will remain unchanged. In fact, any shift of Chinese soybean imports away from US to Brazil will result in increased tonne- mile demand.

Source: Drewry

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