Global maritime analyst, Drewry, has projected a rise in market share for the multipurpose shipping fleet, along with a recovery in freight rates in 2018.
This is as a result of recovering demand for multipurpose shipping combined with improved market conditions for competing sectors, according to Drewry’s latest Multipurpose Shipping Market Review and Forecaster report.
“This has already led one container line to announce that it is less interested in project cargo than previously, due to the extra time needed to stow this type of cargo,” said a Drewry spokesperson.
The report noted that the long-term outlook for the multipurpose and heavy lift sector remained positive despite China’s plans to curb steel production by around 50 million tonnes in an attempt to clean up its air pollution.
“The expectations for global GDP, coupled with those for global PMI [purchasing managers’ index] and the rising oil price, are likely to lead to improved investment and therefore increased demand for breakbulk and project cargo,” said Drewry lead analyst for multipurpose shipping, Susan Oatway.
Additionally, Drewry highlighted that the modern fleet of project carriers was well placed to take advantage of an upturn in the sector.
