Speaking at an ask the analyst session at the Sea Asia Virtual Preview event, Khalid Hashim, managing director of Precious Shipping said the fundamentals for the dry bulk market were very different compared to the post-2009 crash period and the market lows seen in 2016.
Hashim said that the pandemic had made predicting and analysing trade demand incredibly difficult.
Clarksons pegged world dry bulk demand growth at 4.36% for 2021 and while that estimate was higher earlier in the year, Hashim expected it to rise again as the year progressed. That demand growth compares to net fleet growth expected around 1.7%, and a low orderbook to fleet ratio of 5.75%. In the wake of the financial crisis in 2009 the orderbook to fleet ratio was 80.49% and net fleet growth was 9.23%, leading to a period of worsening oversupply, “this time, it’s different,” he said.
Crew change in Singapore Seafarer welfare and the outlook for post pandemic global trade will form the key discussion points at Sea Asia’s inaugural Virtual Preview event, which commences on 21 April for two days – as part of Singapore Maritime Week.
Seafarer welfare and the outlook for post pandemic global trade will form the key discussion points at Sea Asia’s inaugural
Virtual Preview event, which commences on 21 April for two days – as part of Singapore Maritime Week. This will take place ahead of Sea Asia 2021, a hybrid virtual and physical event (21 - 23 September) aimed at bringing people and businesses back together, to collaborate, re-engage, re-establish relationships, and reconnect around the transformation of the maritime industry following the uncertainty and disruption of the global COVID-19 pandemic.