Factsheet drybulk Essay Example | Topics and Well Written Essays - 500 words

Factsheet drybulk - Essay Example There will be huge demand and supply for the dry bulk as long as the buyer ships the products and commodities from one place to the other. However, due to increase in the price of the commodities, the present market position stands at a lower level. The main reasons are lower market expectations, lower demand for the cargo supply, critical conditions of market life cycle and declining fleet growth. The company needs to control its existing strengths in shipping and attempt to expand its markets to the major areas such as South Asia and North America, to gain a wider area of operation. Dry bulk market may have higher rates in the future. Temporary rise in rates also seems possible during the year. While world trade is likely to increase at a reasonable rate in 2012 as well as 2013, the amount of new capacity will consume high rates towards operating expenses. â€Å"Emerging markets such as India and China are likely to be key to the success of Farstad. As they are the growth markets for any new company, so further addition to the company’s top line would be dependent on its efforts to exploit the trade routes emanating from these countries† (Abhishek, n.d.). â€Å"Capesize, Panamax, Handymax and Handy size† (Segments, 2012). Capesize is used to transport iron ore and coal. Panamax can carry grain, coal and bauxite. Small shipments such as sugar and other commodities are carried by Handymax and Handy size. Capesize is the largest vessel and Handy size is the smallest vessel out of the four vessels in the dry bulk segment. The Outlook for the Dry Bulk †¦ Italian Style, (2012). 8th Mare Forum Italy 2012, Sorrento. Braemar Seascope Research. Retrieved from