BIMCO’s latest market analysis of the dry bulk market suggests the sector could become profitable again in 2019 as long as shipowners tighten their belts year on year.
The current condition of the dry bulk market was described as “terrible” by BIMCO president, Philippe Louis-Dreyfus, adding, “We cannot expect to be helped by growth in demand, the recovery of the market is wholly and exclusively in the hands of us, the shipowners.”
The organisation modelled a potential “road to recovery” in which shipowners scrap an equal number of ships to the number of newbuilds acquired each year.
Scrapping older vessels is not only a good way forward to a better market, Louis-Dreyfus noted, he also believes it be an essential measure for the environment and, last but not least, the safety of crews.
“The medicine is not going to be easy to take, zero supply growth has been achieved only three times in recent history, during the 1980s and 1990s,” Louis-Dreyfus continued.
“The task ahead of us is huge and must be sustained year after year. We need to demolish an enormous number of ships and refrain from building new ships.”