Peter Sand, BIMCO’s Chief Shipping Analyst, talks about the latest update of BIMCO’s Road to Recovery analysis of the shipping market. The fact that the first half of February 2017 was a troublesome period came as no surprise and it makes the strong comeback in the following month stand out as even more remarkable. During that time, the BDI went from 688 to 1,147.
Bimco explains that, even if there has been a recent lift in freight rates certainly positive, there is still work to be done on the supply side. A significant level of demolition activity must be maintained, and increasing focus must also be on keeping slow steaming around.
Estimating a return to profitability in the dry bulk industry remains a moving target, and one that differs from one company to the next. However, Bimco suggests that, by projecting a course for profitability, everyone in the industry can use it as a reference.