Khalid Hashim, the veteran managing director of Thailand dry bulk firm Precious Shipping, has warned in his firm’s annual review than unless there’s a record amount of bulker scrappings this year, the supply/demand balance will not return.
Hashim said prospects in the first half in particular do not look good with new supply coming in and demand not growing “in any significant fashion”.
Despite most bulker segments operating at a loss, the situation might not reverse any time soon, Hashim said, quoting economist John Maynard Keynes: “Markets can stay irrational far longer than you can stay solvent!”
“We therefore think that the BDI will not push much lower than where we are today and will remain range bound within 350 to 750 points for the better part, or all, of 2016,” Hashim said.
Hashim is part of a very high calibre line up for the Dry Bulk session at the inaugural Maritime CEO Forum to be held at Singapore’s iconic Fullerton Hotel on March 15.