Esben Christensen
Partner & Managing Director, London
The dry bulk shipping industry’s financial performance declined markedly last year. Too many vessels chasing too few shiploads means pricing won’t rebound meaningfully in a while.
At a glance
- A straightforward equation can explain the industrywide decline: weak pricing + costly operations + high debt loads = distress.
- Because it makes about half the world’s steel, China’s economic slowdown is the most obvious culprit that’s causing reduced demand for the industry.
- Companies have limited control over the demand side of the equation. But they can control their own operating performances.
