Shipping rates for mineral commodities are expected to increase through to 2020 as stringent regulatory frameworks force ship owners' costs upwards, delegates heard at the 24th Bauxite & Alumina conference in Montego Bay, Jamaica this week.
Despite two challenging years for the global shipping industry, dogged by overcapacity and financial issues on the part of some of its main players, the near-term outlook for shipping rates is bullish, according to Pat Krebs, vice president of Mid-Ships. Addressing the audience in Montego Bay, he said that demand for cargo space, combined with stricter regulations, is expected to lead to increases in rates. "One the one hand, you have seen overcapacity biting across the sector over the last couple of years, but the market today is very firm, borderline hot," he said. "We expect a 15-20% increase in shipping rates in 2019-2020." He listed two main factors - both part of internationally-agreed regulatory frameworks within which shipping operates - that are bound to support shipping...