SHANGHAI International Shipping Institute's (SISI) latest report points out that in 2013, the dry bulk and container shipping market will stay bleak as capacity continues to outstrip volume while oil tanker business will see a moderate recovery, Xinhua reports.
The report says, the dry bulk market is at an historical low in 2012 with a year-on-year plunge of 40 per cent in the Baltic Dry Index (BDI). But a weak growth will be seen in 2013 as world's economy turns better.
Stimulated by America's third quarter and China's launch of series of major infrastructure projects, the world's ore trade volume is expected to climb four per cent to 1.15 billion tonnes. However, capacity will continue to grow, which hinders market recovery, it said.
The China Containerised Freight Index (CCFI) has increased 18.44 per cent year on year to 1,174 points as of the end of November. In 2013, SISI estimated that container shipping volume will increase 6.65 per cent against a capacity growth of 7.45 per cent. Capacity growth on the three major trade lanes will slow down. CCFI is predicted to be remaining at 1,100 points.
As for the tanker business, which has been stagnant for the last four years, it is predicted to see some growth in 2013 as Drewry expects that the demand for petroleum will have a 1.28 per cent growth.
As of the end of November, the price index of crude oil has fallen 8.15 per cent to 710 points. Product oil price index dropped 12.46 per cent to 632 points.