Ongoing market uncertainties – along with inf lation – are taking their toll on the bulk sector.According to Breakwave Advisors, founder of the Breakwave Dry Bulk Shipping ETF (BDRY), geopolitics has impacted the dry bulk sector significantly this year, with the war in Ukraine leading to an energy shift in Europe towards coal. The higher demand has affected dry bulk rates – and China’s decision to cut off Australian coal imports in 2020 has added to the mix.The movement of grains out of the Black Sea, however, has become a serious concern – heightening worries about food security around the world. “We have seen an increase in demand for grain supplies elsewhere, along with an increased demand for vessels,” reads its latest dry bulk report.Gibson Shipbrokers has also seen an increase in tanker asset values with data showing a divergence between newbuild and second-hand price increases.
