Too many bulk ships

Bloomberg published an article yesterday, stating there are too many new bulk ships coming out of yards, which has already caused charter rates to drop.

Leasing costs for capesizes, 1,000-foot-long ships hauling iron ore and coal, will drop 34 percent to average $22,000 a day this year, according to the median in a Bloomberg survey of eight fund managers and analysts. The last time that happened, China’s economy, the biggest consumer of the minerals used in steel and power, was 75 percent smaller and the benchmark Standard & Poor’s GSCI commodity index 67 percent lower.

While Clarkson Plc, the world’s biggest shipbroker, expects seaborne trade in the two cargoes to exceed 2 billion metric tons for the first time this year, the 7 percent increase won’t be enough to eliminate a glut. About 200 capesizes, spanning some 35 miles end-to-end, will leave shipyards this year, expanding the fleet by 18 percent, the Bloomberg survey showed.

Of course, the Chinese could surprise everyone, and stock up on commodities when the shipping is cheap. They did that last year.

Later in the article they quote folks in the containership business as saying "things are pretty good".

Let's see if they stay that way, after more containership newbuildings come into service.

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