Shanghai: Shanghai International Shipping Institute (SISI) has announced that it has introduced the Dry Bulk Shipping Prosperity Index (DSPI) to better reflect the market trends of the bulk shipping market and serve shipping companies. It is the first prosperity index in the dry bulk shipping sector in China.
In a report, SISI pointed out the dry bulk shipping market remains in the doldrums through the second quarter of 2014 and many dry bulk shipping companies are facing financial risks.
SISI believes the overcapacity problem will continue to intensify in the near future.
“Although the shipbreaking volume is at a high level, the newbuild order volume is also surging, and the overcapacity extent hasn’t reached the highest historical level. The internal rate of return will remain at a low level,” SISI said in the report. [04/07/14]