Have digital developments and changing dynamics in the dry cargo market put a cap on boom-time rates, which have historically helped shipowners build fortunes?
That was the possibility raised by Jan Dieleman, president of Cargill’s ocean transportation business, at the TradeWinds Shipowners Forum at Nor-Shipping today.
“In the past a lot of shipowners made a lot of money on spikes caused by huge inefficiencies in the supply chain,” he said.
He pointed to digital tools, more attention paid to trade flows and larger vessels focused on single-trade routes as factors that make today's market more efficient.
“This makes the opportunities for big mismatches and big price spikes much more difficult going forward than it was in the past,” Dieleman said.
The executive told delegates the company had been surprised by the slowdown in the bulker market late last year.
“What happened with the tragic accident in Brazil was another hammer in the market,” he said. “But that’s mainly in the capesizes, I would say.”
He said other asset classes were doing better, with the medium-range tanker market showing something of a recovery this year.
“It’s not all doom and gloom, but we are not at the levels we would have expected to be at,” he concluded.
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