Recovery in dry bulk shipping to be short lived

Recent strength in dry bulk shipping to be a short-term phenomenon.

Drewry forecasts dry bulk freight rates in 2016 will be, on average, lower than in 2015, as the medium-to-long term fundamentals for dry bulk shipping will remain challenging, according to Hellenic Shipping News.

The boom in iron ore trade that has resulted in record exports out of Australia and Brazil is expected to be a short term phenomenon as it has mainly been based on iron ore restocking due to low inventories, hence resulting in stronger Capesize engagement particularly in the Pacific basin. Seasonal iron ore restocking activity in China will relax over the next few months as inventories increase.