Dry bulk’s dilemma: Demand is failing to keep pace with fleet growth
- Tonne-mile demand expected to grow less than 1% this year, while net fleet capacity is set to increase by almost 3%
- Dry bulk rates are driven by the global economy in general and the Chinese economy in particular. Both face headwinds from US tariffs
- Share prices continue to decline, with Star Bulk suffering the steepest slide among larger-cap owners. Shares of Star Bulk sank 9% on Wednesday in more than triple average volume
Bulker spot rates remain very weak. There is rising pessimism on Chinese demand and growing concern over the impact of US tariffs on the global economy. Bulker owners could be in for an extended downturn