The last three months have
been some of the worst the
multipurpose and project
carrier sector has endured
in living memory, according
to shipping consultancy
Drewry.
The breakbulk and
project cargo sector
remained weak, it added,
with little suggestion that
volumes would improve
significantly until the end
of 2017.
Drewry’s latest
‘Multipurpose Shipping
Market Review and
Forecaster’ said that rates
had continued to slide
to barely cover operating
expenses, as the competing
sectors of container ships
and bulk carriers had
weakened the multipurpose
vessel (MPV) market ever
further in their search for
market share.
Although, over 2015 to
2020, the MPV market
share is expected to
decrease by around 1% per
year, it is forecast to reach a
f loor in 2017 and return to
positive growth thereafter.
“We are more pessimistic
about the near-term outlook
than we were six months
ago, but we can see recovery
for this sector, albeit
some way off,” said Susan
Oatway, lead analyst for
multipurpose shipping at
Drewry.
“While our optimism for
the sector remains muted,
there are some pockets of
growth. With oil prices
forecast to rise back above
US$55 per barrel next
year, the project sector
is expected to see some
renewed interest. There is
also some potential spend in
the Middle East and Africa.
And there has been renewed
interest in renewables,
particularly wind in the US.
“The main problem
remains the competing
sectors, particularly
container shipping, where
aggressive pricing is
drawing cargo away from
MPV ships.”
