SHANGHAI International Shipping Institute's (SISI) latest report predicts that the dry bulk shipping rate in 2014 will be six per cent higher than in 2013 as capacity growth slows down, mitigating supply-demand imbalance, Xinhua reports.
The report points out that China's dry bulk shipping market was gloomy in the first half of 2013 but started to rise rapidly in the second half.
At the end of November, the full year average of the China Coastal Bulk Freight Index (CBFI) was at 1,100.26 points, which was at the same level as in 2012. July 26 marked the 963.3 point low with November 29 marking the high at 1,441.92 points, marking near 50 per cent gap.
China's dry bulk shipping capacity growth slowed in 2013 as newbuild numbers fell. During the first three quarters, there were 1,660 dry bulk vessels in China with a capacity of 52.19 million deadweight tonnes, growing 5.6 per cent, less than half of the growth of the previous year's corresponding period.
SISI predicts that China's dry bulk shipping demand will rise steadily, but at a slower seven per cent rate in 2014. Growth will slow more in the second half as capacity growth shrinks to five to six per cent as many older ships retire, said SIS.
Taking into account the growth of dry bulk cargo volume and capacity, as well as inflation, SISI estimates that the dry bulk shipping rate will rise six per cent with the CBFI fluctuating between 1,100 to 1,400 points.
WORLD SHIPPING
03 January 2014 - 22:48
Shanghai International Shipping Institute sees bulk rate rise
SHANGHAI International Shipping Institute's (SISI) latest report predicts that the dry bulk shipping rate in 2014 will be six per cent higher than in 2013 as capacity growth slows down, mitigating supply-demand imbalance
WORLD SHIPPING
03 January 2014 - 22:48
Shanghai International Shipping Institute sees bulk rate rise
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