The dry bulk shipping market will remain in recession due to contracting demand for iron ore and coal, and any recovery is not expected until 2017, according to the Dry Bulk Forecaster report published by global shipping consultancy Drewry.
Falling demand and oversupply has severely impacted commodity values, with iron ore and coal prices in virtual free-fall. The dry bulk shipping sector has been a casualty of these developments with resultant impacts on vessel earnings.
The depressed state of the dry bulk sector has led to doubts about the future of many shipowners and their ability to withstand prevailing market conditions. Drewry believed that the future of a number of yards and owners are at risk.
