The plight of dry bulk market will continue in 2016
- Author:Stander
- Source:Global Logistics Network
- Release Date:2016-07-05
Alix Partners a study showed that in the bulk market, big owner's EBITDA (earnings before interest, tax, depreciation and amortisation of profit) has fallen from $169 million to the losses of $115 million.Still think of the current market supply and demand imbalances, it also makes the freight rate in February 2016 fell to its lowest ever.
In 2013 and 2014, bulk market problems encountered at the beginning, to hit bottom in 2015, perhaps 2016 will continue to struggle.Especially in Britain after the back, the current situation is unfavorable for bulk and freight market.
The Morgan Stanley analyst explained, because the bulk and freight market is supply glut, most companies face a serious problem, and British retreated Europe will be tighter debt, liquidity continues to weaken, many companies will be increasingly serious cash flow problems.Alix Partners believe that in spite of 2016 years apart many old ship, but new capacity is still higher than dismantling capacity.Bulk market appeared signs of recovery in the first quarter, but they still don't believe in 2016 in the rest of bulk market.
The Morgan Stanley analyst explained, because the bulk and freight market is supply glut, most companies face a serious problem, and British retreated Europe will be tighter debt, liquidity continues to weaken, many companies will be increasingly serious cash flow problems.Alix Partners believe that in spite of 2016 years apart many old ship, but new capacity is still higher than dismantling capacity.Bulk market appeared signs of recovery in the first quarter, but they still don't believe in 2016 in the rest of bulk market.