Industry players see dry bulk making strong rebound

DRY bulk shipping is tipped to have the most potential within the broad maritime sector in the coming few years, with China and India highlighted as the bright sparks in the industry.

Industry players told The Business Times that opportunities also exist in other areas but

Peter Sand, chief shipping analyst with Bimco in Denmark, believes that the dry bulk sector has seen its worst and is teed up for a turnaround.

"Despite being awash with excess capacity, the dry bulk sector seems to have found a way to manage supply. This has proved well in the second half of 2013. Depending on how well the tools will be applied by the industry, going forward this may develop to improve earnings."

Chris Faulkner, CEO of Breitling Energy in the US, agrees that dry bulk is the sub-sector with the most potential within the maritime industry. "Dry bulk seaborne shipping is looking really strong, with Barclays Research forecasting 5.8 per cent growth in 2014 versus a 5.3 per cent increase in the global merchant fleet. Growth in commodity cargoes like iron ore and coal will be a driver in the dry bulk market, as countries in South-east Asia and Africa push to build out infr…