Dry Bulk Shipping Market is Estimated to Grow at a CAGR of 4% During the Forecast Period

Dry Bulk Shipping Market Highlights

Market Research Future (MRFR) expects the dry bulk shipping market to make a leap from USD 4.2 Billion in 2023 to USD 5.3 billion by 2030, at a rate of 4.0 % from 2023 to 2030.

Following the COVID-19 outbreak, the dry bulk shipping industry suffered a major income loss. Despite China's progress toward recovery, the global market's expansion has stalled due to the post-pandemic decline in freight rates. China's importance in the dry bulk shipping sector has been highlighted by the lockdown brought on by the pandemic. Because of the deteriorating commercial ties between China and the US, the slower US export growth has also been detrimental.

However, beneficial elements like the expanding construction sector, which focuses mostly on infrastructural improvements, and the increase in housing investment should significantly increase the market share. A number of market end users are facing difficulties, including the automotive industry, which is producing less demand for steel and aluminum than typical. Government investments in infrastructure are increasing, but overall demand has remained weak and freight rates have fallen dramatically. The market's business prospects will worsen as a result.

Despite this, the dry bulk shipping sector may experience rapid expansion in the years to come due to the acceleration of industrialization and the growing number of nations that are expanding their demand for coal and iron ore. The need to export and import coal globally is accelerated by the skyrocketing electrical demand. The demand for diverse resources like cereals, coal, iron ore, lumber, rods, coils, and plates is increased by the global economic boom, the exploding world population, and the extensive use of steel in manufacturing. Surge in industrial production, mostly in emerging countries will be a favorable trend in the dry bulk shipping market.

Segmental Analysis

Handysize, supramax, Panama, and Capesize are a few types of dry bulk shipping. Due to the high demand for the transportation of coal, iron ore, and commodity raw materials, the Capesize type of dry bulk is leading. The largest class of bulk carriers, known as Capesize, are primarily capable of transporting several kinds of bulk cargo. Coal and iron ore are transported by capsized ships. The name "Capesize" refers to the fact that large ships cannot navigate the Panama Canal and must instead avoid the Cape of Good Hope. The demand for raw materials like iron ore and coal is rising as a result of the rapid industrialization and liberalisation taking place in emerging nations. Typically, these raw materials are shipped in ocean trade as bulk cargo.

Application areas for dry bulk shipping include iron ore, coal, phosphate rock, cereals, and bauxite/alumina. Given that iron ore is the commodity that is traded the most globally, it may dominate the market in the next years. Global steel production, which employs iron ore as a raw material, is what drives demand for iron ore transportation. The biggest iron ore producers are China, Australia, and Brazil, which collectively generate a sizeable share of the world's iron ore. These nations also export a substantial amount of iron ore, and the demand for dry bulk shipping services is greatly influenced by these shipments.

Regional Insight

The market is currently being led by APAC. China and India are the two key countries with rising demand for dry bulk shipping. due to the significant import and export of dry cargo from these nations. enormous quantities of raw resources are needed because China and India are countries with enormous populations. The demand for dry commodities drives the demand for dry containers in these nations. China is also producing more in bulk. Additionally, the expansion of intra- and inter-Asian trade is promoting container transportation in the area. In an effort to increase commercial prospects inside Asia, many Asian nations are lowering trade restrictions.  It is anticipated that all of these trading opportunities will affect container demand from different end-users around the world.

Top Contenders

Scorpio Bulkers, Inc (Monaco), Star Bulk Carriers Corporation (Greece), Pacific Basin Shipping Limited. (Hong Kong), and Golden Ocean (Bermuda) are the top market contenders listed in the report.

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