China’s expanding appetite for foreign-sourced bulk products will not be enough to lift this sector of the world’s maritime industry out of its doldrums as it faces a flood of new vessels next year.
The global fleet of dry-bulk carriers is expected to outpace economic demand in 2011, a result of the industry's buying spree two years ago before the financial crisis severely slashed sea trade, reports Hellenic Shipping News.
Even with China importing record volumes, analysts still expect a difficult year for the freight industry.
“There are simply too many vessels in the market,” said Rahul Sharan, an analyst with consultants Drewry.
Dry-bulk freight supplies were expected to increase to 616-million tonnes deadweight (dwt) next year, a 15% rise from this year's 537-mt, Sharan added.
That would surpass a 5% rise in expected demand growth in seaborne trade - to 413-mt dwt from 395-mt.
