Dry Bulk Shipping Market Report 2024 (Global Edition)

Current scenario of the Dry Bulk Shipping market 

The key opportunity of the Dry Bulk Shipping market

• The growing adoption of digitalization and technological advancement in the industry acts as an opportunity for the dry bulk shipping market.

There is a tendency in the dry bulk shipping sector towards greater technology adoption and digitalization. Ship owners and operators are improving overall operations, increasing fuel efficiency, and optimizing routes by utilizing digital technologies and data analytics. To enable better-informed decision-making, this involves combining sophisticated navigation systems, real-time monitoring tools, and predictive analytics. 

For instance, 
Platts, a part of S&P Global Commodity Insights, unveiled the Platts Dry Index (PDI) in November 2023. By combining dry bulk freight data, this index offers a thorough industry benchmark. Weighted average time charter equivalent indices for the Capesize, Ultramax, Kamsarmax, and Supramax segments are the source of the PDI, which provides a more comprehensive and representative metric for the dry bulk shipping industry. 

Source (https://press.spglobal.com/2023-11-14-Platts-of-S-P-Global-Commodity-Insights-launches-Dry-Bulk-Freight-Index) 

To address environmental concerns, the dry bulk shipping industry is actively involved in decarbonization programs. As part of a larger commitment to lower carbon emissions, businesses are looking into cleaner propulsion technology, such as alternative fuels and energy-efficient vessel designs. Participation in industry-wide programs to achieve low-carbon and sustainable shipping is increasing. These initiatives show the industry's shared commitment to reducing its effects on climate change and are in line with international environmental goals. 

Key drivers of the Dry Bulk Shipping market

• Increasing urbanization is driving the dry bulk shipping market.

Urbanization patterns are important because they drive the demand for coal and iron ore as raw materials for building and infrastructure projects. However, the new outbreak has clouded the market, affecting commercial flows and maritime traffic. 

For example,
In 2022, approximately a third of the total population in India lived in cities. The trend shows an increase in urbanization by more than 4 percent in the last decade, meaning people have moved away from rural areas to find work and make a living in the cities. 

Source (https://www.statista.com/statistics/271312/urbanization-in-india/#:~:text=Urbanization%20in%20India%202022&text=In%202022%2C%20approximately%20a%20third,a%20living%20in%20the%20cities.) 

Grain, coal, and iron ore are among the basic materials whose demand for dry bulk transportation is highly impacted by the level of world economic activity. The two most often traded dry bulk commodities worldwide are coal and iron ore. Asia-Pacific's major nations, including China, Japan, and India, are among the biggest importers of coal to meet the needs of the energy industry. The need for building supplies and energy resources is fueled by urbanization and population growth, which drives the flow of coal, iron ore, and bauxite/alumina along international trade routes. 

• Growing requirements for steel are driving the dry bulk shipping market.

The requirement for infrastructure development increases along with city growth, which fuels the need for cement and steel production. Transport of bauxite and alumina is essential to the manufacturing of aluminum, which benefits a variety of sectors including building, automotive, and aerospace. Strategic vendor selection processes and strong transportation networks are essential for the smooth shipping of alumina and bauxite.

For example,
According to the World Steel Association, steel demand rose by 0.4% in 2022 to 1840.2 Mt. Steel consumption will increase by 2.2% in 2023, reaching 1 881.4 Mt. According to the same statistical source, China and India would be the top two leading countries in terms of steel output in 2020-21.

Source (https://worldsteel.org/data/world-steel-in-figures-2022/) 

The market for dry bulk carriers is expanding due to rising trade volume and global demand for iron ore and coal. Coal, a low-cost energy source, has seen significant growth in recent years. The global seaborne iron ore trade has also grown. The government has implemented programs to ensure sufficient iron ore supply for steel mills, including import substitution and native mining activities. The steel demand has increased due to increased infrastructure projects. The market for dry bulk shipping has changed significantly due to the increased shipping of steel and coal. These factors contribute to the growth of the steel industry.

Key restraints of the Dry Bulk Shipping market

• Growing trade tensions between countries hamper the dry bulk shipping market growth.

The worldwide market for dry bulk shipping can be significantly impacted by trade conflicts between nations. When nations apply tariffs or other trade obstacles on imports from other nations, trade tensions result because this might lower demand for commodities and other goods shipped by ship. Reduced imports and exports may result from nations becoming more protective of their home sectors when trade tensions rise. For example, the continued tension between Russia and Ukraine over the war has caused activities in the Black Sea port region, which is a significant supply route for commodities traveling from former Soviet Union countries to Europe and Asia, to cease. Maersk, a significant shipping company, has also ceased operations in Russia. This may lead to a decline in the need for dry bulk shipping services, especially for goods that are frequently traded globally like grain, coal, and iron ore. Trade disputes may also cause shipping costs to rise and shipping routes to be disrupted. For example, shipping companies may have to find alternate routes or sources of products when tariffs are placed on imports from a specific country, which can raise transportation costs and cause longer transit times. Trade disputes may also affect how competitive the dry bulk shipping market is. Therefore, during the forecast period, rising trade tensions between nations could pose a serious threat to the expansion of the worldwide dry bulk shipping market.

How did COVID-19 impact the Dry Bulk Shipping market?

The COVID-19 pandemic has had a major effect on trends in international maritime trade since it caused the market for dry bulk cargo to collapse for all kinds of vessels, which in turn caused a decrease in cargo movements as a result of the halt or slowdown of economic activity. The second half of 2023 is predicted to see a spike in freight rates due to China's economic recovery, which will increase the market value of dry bulk shipping. Due to a slowdown in activity during the shutdown in China, one of the world's biggest producers of marine commodities, including grain, coal, and iron ore, the COVID-19 epidemic hurt the expansion of the dry bulk shipping sector. But shortly, the post-pandemic rebound of China's economy is probably going to increase demand for bulk transportation. However, as things started to normalize, several nations took steps to gradually lift the lockdown and resume commercial activity.

Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.

The Global Dry Bulk Shipping Market is witnessing significant growth in the near future.

In 2023, the Iron Ore segment accounted for noticeable share of global Dry Bulk Shipping Market and is projected to experience significant growth in the near future.

The Capesize segment is expected to expand at the significant CAGR retaining position throughout the forecast period.

Some of the key companies Bahri , Eagle Bulk Shipping Inc. and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.

Frequently Asked Questions (FAQs)