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The largest U.S.-listed dry bulk shipping companies are buying up ships in the secondhand market in anticipation of higher rates ahead.
During conference calls on Thursday, executives of both
Golden Ocean (NASDAQ: GOGL) and
Star Bulk (NYSE: SBLK) highlighted stronger fundamentals for 2021, with vaccine-fueled cargo demand growth expected to outpace vessel supply growth.
According to Star Bulk CEO Petros Pappas, "Clarksons expects the dry bulk trade to expand by 3.7% in terms of ton-miles. On the macro side, we expect a world economic rebound, a weak dollar, strong oil prices and low interest rates.
"On the micro side, we have a low orderbook, a future increase in Brazilian iron-ore exports and West African bauxite exports, more long-haul grain trade, more congestion, and a positive vessel-supply effect due to environmental regulations. We remain very positive about the short- and medium-term prospects for dry bulk shipping," affirmed Pappas.