Grain may play lead role in dry bulk market recovery

19.07.2016

Increased demand for transportation of goods by all kinds of tonnage was the main driver of sea shipping market strengthening. Nevertheless, taking into account the reduction in world ore and coal trade over the past 2 years, market operators have begun searching for new types of cargo, which could stand the next wave of turbulence. Grain may become such king of cargo. Moreover abundant harvests in recent years have led to significant increase in grain trade.

Over the last 4 years global grain production at around 2 billion tons and rising demand for food products triggered increase in world trade over 300 MMT. This provided substantial support to the sectors of small and medium tonnage of Panamax and Supramax type, but in general only promoted volatility in the dry bulk market due to seasonal fluctuations in demand for foodstuffs.

Allied Shipbroking analysts forecast that grain impact on dry bulk market will increase. Moreover, grain trade may play a lead role in world sea shipping market recovery.

More information on freight market is available to subscribers for weekly market report "Black Sea Grain & Oil" by UkrAgroConsult.

 

 

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