A new report on the global dry bulk shipping market says demand for steel is encouraging the growth of the dry bulk shipping market.
The Global Dry Bulk Shipping Market Report: 2014 Edition states that demand for steel is to grow at an accelerated rate, in turn encouraging the growth of the dry bulk.
In 2013 steel demand grew higher than anticipated due to a stronger performance in the developed world than was initially expected. This was mainly driven by the recovery of the US market. Also growing construction activities around the world resulted in increased demand for iron ore and coking coal which increases seaboard trade of these dry bulk commodities.
According to the report, China accounts for the majority share of the imports and exports of key dry bulk commodities. Rebounded dry bulk freight rates, shrinking charter hire prices and over-supply of dry bulk carrier capacities are all developments that are mentioned in the report. A number of key companies are mentioned, including Diana Shipping, Dry Ships, Navios Maritime Holding and Genco Shipping, who are all competing on price, location, size of vessel, age and condition, customer relationship, operating expertise and professional reputation.
The report also notes that over the last year there has been a steady increase in the amount of increased new orders and reduced scrapping of dry bulk vessels, which has also contributed to the overall growth of the market.