Hashim warns of over ordering threat

Do not expected a prolonged upturn in dry bulk fortunes, one of the region’s top owners warned delegates attending Marine Money’s event in Singapore earlier this week. Khalid Hashim, managing director of Precious Shipping, warned that inevitable overordering would mean any run on the market would not last as long as the huge supercycle of the previous decade.  “The market will collapse just as night follows day in 2016, 2017,” Hashim said.

“History will repeat itself with overordering,” he warned.

The current orderbook however paints a good picture for owners, he said.

“The tsunami of ships that came in 2009, ‘10, ‘11, ‘12 is very different – in 2014, ‘15 and ‘16 we could even see negative growth,” he said.

Capesizes earning $40,000 a day at the moment are all down to China restocking, something he reckoned will last longer than some analysts have predicted. Inventory at Chinese ports is 25% less than last year and steel output is 10% up, over last year, Hashim said.

Recovery will last a “good couple of quarters” the Precious boss said.
Source: Sea Ship News