Market Research Of Global Dry Bulk Shipping Market By Knowledge Sourcing Intelligence
INTRODUCTION
The dry Bulk shipping market is anticipated to grow at a CAGR of XX.XX% during the
forecast period to reach a total market size of US$XX.XX billion by 2023,
increasing from US$XX.XX billion in 2017. Rapid economic growth in both
developed and developing countries is fueling the production of iron and
steel which is boosting the demand for dry bulk shipping solutions to transport
iron ore, coking coal and another dry bulk fleet, thus positively impacting the
growth of dry bulk shipping market. However, the supply of vessels is still higher
than their demand which is restraining the growth of the dry bulk shipping market.
Geographically, APAC will witness a significant regional market growth owing to
rising infrastructural activities in countries like China and India along with the increasing import of
grains.
Sample view of global dry bulk shipping market share
Growing steel production
There is a huge
importance of steel in the shipping industry as it is widely used and
steel products such as coils, plates, and rods are transported according to
their huge demand worldwide. Even in average houses, the links between the dry
bulk shipping and steel products can be easily seen. The usage ranges from
a small toaster to big coal-generated power plants. The shipping industry could
not function efficiently without the steel products which in turn is impacting
the global trade as well. Also, the growing steel industry is escalating the
iron ore production, which is one of the major constituents of the dry bulk
shipping industry. Hence, the growing steel production has a significant impact
on driving the growth of the global dry bulk shipping market.
Dry Bulk Shipping Market forecast
by Commodity Type
By commodity
type, the dry bulk shipping market is segmented as iron ore, coal,
grain, bauxite, and others. Iron ore, coal, and grains held the largest
market share in 2017 owing to increasing expenditure on manufacturing
activities, rising demand for grains and favorable freight prices. Increasing
production of wheat by exporting partners and improvement in the trade
relations between several countries will drive the demand for grain shipping in
the coming years. In addition, a boost in steel production will augment the
demand for dry bulk shipping services in the Asia Pacific region. However,
reduction in the overall oil production by OPEC members and volatility
in grain production could hamper the demand for carriers throughout the
forecast period.
Sample view of global dry bulk shipping market share
Grain
The dry bulk
shipping market for grains is projected to grow at a CAGR of XX.XX%,
rising from US$XX.XX million in 2017 to US$XX.XX billion in 2023. The increasing population throughout the world will drive the demand for grains, which in turn
will boost the demand for dry bulk shipping services. Grains are a necessary
good and therefore it witnesses inelastic demand. Recently, the shipping
industry witnessed a surplus in the number of vessels, which reduced the prices
the overall freight prices per ton. As per the International Grains
Council (IGC), the freight rate in the Brazil- EU route bounced back from The 52-week low of US$22/ton and is currently trading on a 52-week high of
US$27/ton. In addition, IGC also reports that the total exports of wheat
and coarse grains witnessed a steady increase from 2012/13, increasing from
270.8 million tons to reach a total of 345.7 million tons in 2015/16. The total
exports of grains are projected to rise even further in the coming years owing
to the increasing investment in agricultural technology to boost the country’s
production and growing population. The freight rates are highly influenced by the import and export policies of a country. For instance, in December 2016,
the government of India slashed the import duty on wheat to 0% due to
lower wheat production. This motivated the suppliers based out of Ukraine and
Australia to boost their wheat exports and resultantly, the overall
wheat imports by Industry increased to 4 million tons in the first
half of 2017. The various factors affecting the freight rates of grains are
government policies, grain production, and technological advancement in
agriculture among various others. Factors such as changes in the oil production
by OPEC members, an increase in domestic production and unfavorable
government policies might restrict the dry bulk shipping services for grains
over the forecast period.
Dry Bulk Shipping Market by Geography
By geography,
the dry bulk shipping market is segmented as North America, South America,
Europe, Middle East, and Africa, and the Asia Pacific. The recovery in the global
economy is leading to increasing global trade activities of dry bulk
commodities. The Asia Pacific is anticipated to witness improvement in the freight
rates on account of the improvement of the performance of China while North America
will grow will provide significant revenue generation opportunities during the
forecast period. Similarly, the economic improvement in Europe on account of
favorable corporate condition and steady employment environment will drive the
dry bulk shipping market in the region.
North America
The dry The bulk shipping market in North America is projected to grow at a CAGR
of XX.XX%, rising from US$XX.XX billion in 2017 to US$XX.XX billion in
2023. The import of dry bulk commodities in the region has been witnessing steady growth since the 2008 financial crises. For instance, the United States
imports of iron ore increased from 3,250 thousand metric tons in 2013 to 5,140
thousand metric tons in 2014 (source: U.S Census Bureau). Moreover, it is
anticipated that the domestic steel manufacturers in the United States will
expand their production capacity to meet the growing demand, which it will
further increase the imports of iron ore in the country. Similarly, grain import in Mexico is also increasing. The growing shipping activity is
leading to a reduction in the available shipping capacity, thus resulting in
the improvement of the shipping rates. Simultaneously, the export of coal from
Canada has increased over the years, with Canada exporting 30 million tons
of coal around the world (source: Government of Canada). However, the recent trend
of rising crude oil price is likely to affect the margins of the dry bulk
shipping companies as it will raise the shipping transportation cost.
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