Bulk-carrier fleet developments are critically important this year as the trend indicates a steady decline in orders, a Simpson Spence & Young's (SSY) report says.
In its annual shipping outlook, SSY Consultancy and Research said the scrapping of bulk carriers was at double the pace of last year although a slowdown was expected in the second quarter due to strikes and the monsoon season.
'Dry-bulk and combined carrier scrappings are together expected to exceed deliveries,' SSY said.
In contrast, shipyards building tankers and container vessels have full orders.
SSY said the decline in the dry-bulk market since 1995 had continued into the first quarter of this year.
'Weak demand prospects combined with an oversupply of tonnage mean that the market still has some way to go before it recovers,' it said.