Drewry: Half of Over 12-Year-Old Capesizes Need to Go
If dry bulk ship-owners collectively removed half of all capesize ships over 12 years old, equating to around 20 million dwt of capacity, it would enable earnings to return to profitability by 2018, according to the latest estimates from Drewry.
The shipping consultancy believes that dry bulk shipping is facing a perfect storm and requires drastic supply side measures if the industry is to return on course to profitability in the medium term.
If they were to remove all old capsize vessels the recovery would occur even sooner.
According to Drewry, this could be achieved through a combination of scrapping and temporary vessel idling. While the proposed adjustments may seem harsh, there is now a need for industrywide action otherwise the market will remain loss making for the foreseeable future.