Scrapping needs to revisit a peak last climbed in the 1980s if it is to offer support for improved dry cargo rates, Deutsche Bank says.
Analyst Amit Mehrotra forecasts capesize and panamax capacity will grow by 15 million dwt by the end of next year after allowing for slippage and a 50% rise in demolition.
Given the numbers Mehrotra says scrapping has to surpass the historic level of 6.3%
