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Drury: The multi-purpose ship market is hard to recover by 2018
The demand for multi-purpose vessels in the first quarter of this year was not very good. According to the latest report on the review and forecast of the multi-purpose vessel market issued by the shipping consultancy Drury, the demand for cargo transportation of groceries and engineering projects continued to be sluggish. There will be no significant improvement in the multi-purpose ship market by the end of 2017.
Although the capacity of multi-purpose vessels will not grow much in the future, the construction orders for multi-purpose vessels by 2020 will be equivalent to 5% of current capacity, with an average annual growth of less than 0.5%. However, the current severe excess of bulk carriers and container shipping capacity is continuing to erode the multi-purpose vessel's freight market.
Drury: The multi-purpose ship market is hard to recover by 2018
At present, some engineering projects have been cancelled, and some steel mills have stopped production, resulting in a promising future for multi-purpose vessels. However, there are some positive factors in the supply of ships. More than 600 multi-purpose vessels are operating over 25 years, equivalent to 20% of the total existing vessels, and 13% of existing payloads, mainly vessels below 10,000 deadweight.
Although multi-purpose vessels are designed to transport groceries, they now have to compete with other mainstream ship types for cargo. Even some high-end special engineering projects have to seek to transport ordinary goods, which leads to a decline in the overall freight rate.