Deliveries of new dry bulk ships are on course to reach their highest level ever this year and fleet expansion is expected to remain strong in 2012, ship broker SSY said on Wednesday. Thursday, 27.Oct.2011, 08:39 (GMT+3)
Deliveries of new dry bulk ships are on course to reach their highest level ever this year and fleet expansion is expected to remain strong in 2012, ship broker SSY said on Wednesday.
Despite a recent rally on the larger capesize market, brokers and analysts expect vessel supply, which has outpaced commodity demand, to cap dry bulk freight rate gains in coming months with economic uncertainty adding to headwinds.
"For this year we are on course for 96 to 97 million deadweight tonnes of new building deliveries -- the highest ever. We expect to see new building deliveries next year approaching 90 million deadweight tonnes," said Derek Langston, a senior director at SSY Consultancy and Research.
Langston said capesize port congestion off Australia, China and Brazil had risen to its highest level since the end of February.
"While the influence of port congestion can be seen as a short-term positive for freight rates, the expected addition of 250 capesize vessels into the fleet this year underlines the pace of fleet expansion which will play a major role in shaping the market into 2012," he told Reuters.