Precious Shipping’s Khalid Hashim says the long-term fundamentals of the bulker sector remain positive despite the collapse of the Baltic Dry Index, which he attributes to lack of scrapping rather than an absence of demand.
The managing director does not see an underlying demand-side problem.
“The demand side has been hit by a confluence of factors — starting with trade wars, slowing world GDP growth rates, traditional Chinese New Year slowdown, accidents at various iron ore entities in Brazil and Australia — all colliding with the accumulated growth in the net supply of ships over the last few years due to the virtual stop of shiprecycling,” he tells TradeWinds.
