India’s gain in sugar exports is shipping sector’s loss
Higher exports from India and Thailand are likely to partly replace Brazilian sugar in Asia and the Middle East, which in turn will hurt tonne-mile demand in the dry bulk market.
Recent talk of mergers and acquisitions in the multipurpose vessel segment has been cited as a potential cure to the sector’s overcapacity ills. But evidence to date suggests that the key beneficiaries are likely to be the acquiring companies themselves rather than the industry as a whole.
The rush to catch up with container equipment demand following the shortfall of 2016 has largely played itself out, with 2018 promising to be a year of record production.
Oil prices rise due to US sanctions on Iran, forcing inventory drawdown in the fourth quarter. This will keep the seasonal spike modest for tanker rates.
Surging growth in renewable energy generation around the world and a construction boom in South East Asia that is expected to run for the next 10 years bode well for the once ailing multipurpose shipping fleet.