Danish Ship Finance has provided a sneak peak of its latest market report, one that paints a grim picture for long-term growth in shipping.
Danish Ship Finance expects long-term growth in seaborne trade volumes averaging about 1% per annum until 2030.
The report suggests that that secondhand prices, which are already low, could decline if the economic lifetime of ships continues to decline. Future demolition is expected to lower the average age of vessels scrapped and continue to reduce the value of older vessels through a shortening of their economic lifetime.
“In segments with low sales activity, the actual market value may be lower than indicated by current broker valuations,” the ship finance house observed.