The last three months saw “some of the worst” conditions “in living memory” in the multipurpose and project cargo sectors, with little chance for any significant improvement until the end of 2017, according to shipping research and consulting firm Drewry.
According to its latest Multipurpose Shipping Market Review and Forecaster report, the operators of breakbulk ships are being squeezed with increased competition from both the operators of container ships, who through the use of equipment such as flat racks and open-top containers can handle oversize cargo, as well as operators of simple bulk ships.
“Rates have continued to slide to barely cover operating expenses, as the competing sectors of container ships and bulk carriers have weakened the MPV (multipurpose vessel) market ever further in their search for market share,” said Drewry.
