BIMCO: Dry Bulk Crisis Could Lead to Major Changes

Image Courtesy: Diana Shipping

The current crisis in the dry bulk shipping sector could have a wider impact with effects on other major sectors of shipping such as tankers and containers, according to BIMCO’s latest report.

Looking at the “road to recovery” for dry bulk shipping beyond the current market difficulties, BIMCO predicts major changes, including consolidation, greater focus on risk management and higher finance costs.

Namely, consolidation and risk management will be the new industry model for dry bulk shipowners with parallel effects in other sectors.

“The fragmented ownership of the dry bulk fleet cannot be sustained over the length of the downturn and we will see greater consolidation, meaning fewer and bigger companies,” Bimco said, adding that company stakeholders will seek a more sophisticated business model with better quality information and a greater focus on risk management.

At the same time, shipbrokers will need to provide a broader range of services as the new, larger shipping companies will seek to deal directly with larger customers on major trade routes, plus more long term COAS and digitalisation will also place brokers under pressure to widen the services they offer.

Additionally, BIMCO said that the Basel III and the proposed Basel IV regulations will increase the cost of bank finance for shipping, while shipyards will have to diversify with many of them opting to close or consolidate.

“This crisis will affect shipping companies, not only economically and financially, but also sociologically. We will see deep changes in the fundamental structure of the shipping world and in shipping companies, mainly the smaller ones. A new business model will emerge, not just for shipowners but also for brokers, shipyards, financial institutions and other stakeholders,” BIMCO President, Philippe Louis-Dreyfus, said.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Nov 2017 >>
MTWTFSS
30 31 1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 1 2 3

Maritime Information Warfare 2017

Maritime Information Warfare will focus on the growing need for navies to develop their information exploitation capabilities…

read more >

INTERNATIONAL GREEN SHIPPING AND TECHNOLOGY SUMMIT

The Summit will gather key marine experts and companies around the globe which have a big influence in the industry…

read more >

The CWC 18th Annual World LNG Summit & Awards Evening

The CWC World LNG Summit will continue to give you access to premium networking opportunities as it brings together the who’s who…

read more >

Marintec China 2017

The largest maritime event in Asia Pacific, Marintec China connects maritime professionals from the entire shipbuilding supply chain together.

Over the years, Marintec China has grown to reflect the size and importance of the Asian maritime market. 2015 event is another record-breaking edition with the largest exhibition area and the highest number of industry professionals attending ever. The encouraging figures proven that China remains one of the major shipbuilding nations and Marintec China has been the most authoritative platform in Asia.

With the maritime industry facing great opportunities but also many challenges, it is important for the industry to connect and engage more to ultimately win new business in globally-significant markets. A visit to Marintec China is a great way to learn about the latest technology and innovation of the supply industry, a platform for industry professional to meet face to face, make connection and do business.

Marintec China is poised to be the definitive event and is undoubtedly a must-attend for all involved in the maritime industry.

Marintec China will be held from 5 to 8 December 2017 at the Shanghai New International Expo Centre in Shanghai, China and continue its dedication to serve as the “LEADING” platform “CONNECTING” the community and “STRENGTHENING” the maritime industry.

Marintec China offers the perfect opportunity for companies serving the maritime market to showcase their innovations, products and services to a wide audience. A platform for face to face meetings in business, creating new relationships and consolidating existing ones.

More info

read more >