Dry bulk fleet renewal faces uncertain future
Dry bulk newbuilding contracting has dropped 70% below the yearly average in the past three months due to falling freight rates, uncertain market conditions, and high newbuilding prices, according to Bimco’s shipping analyst Filipe Gouveia.
Weaker Chinese import demand and improved Panama Canal transits have reduced freight rates, with the Baltic Dry Index (BDI) falling 16% year-on-year by November 2024. While prices for five-year-old bulk carriers have fallen 7% since August, newbuilding prices remain high due to strong demand from tanker, container, and LNG sectors.
Despite limited new contracts, capesize vessels saw a 42% rise in contracting, while panamax and supramax orders declined. The current dry bulk orderbook stands at 10.4% of the fleet, ensuring continued fleet renewal amid future climate regulations. (pb)