Dry bulk shipping charter rates are expected to continue to recover due to a faster growth in demand and a controlled fleet growth, according to a report by global shipping consultancy, Drewry.
The report, released yesterday (Tuesday), noted that the recovery in rates would become more prominent in 2019 and 2020 when the International Maritime Organisation’s ballast water management systems (BWMS) regulations will be implemented.
Implementation of the BWMS was pushed back by two years, bringing down the forecast for demolitions and supporting fleet growth.
The report also stated that demand would improve due to the strengthening of iron ore, coal, grain and minor bulk trades which would mostly be supported by the rise in infrastructure activities in China.
