Drewry warns multipurpose sector
The analyst Drewry has pointed out that although the fall in oil prices, coupled with growing demand and a diminishing fleet, should be good news for the multipurpose shipping sector, it appears that the flipside of lower bunker prices is a global decline in oil and gas investment projects.
There have already been reports of fewer project cargoes available for the multipurpose fleet to carry as project investment has started to slow. The reason is that with the fall in oil prices, there is less incentive to invest in oil and gas projects – one of the largest project cargo sectors. This will, in turn, mean a reduction of available cargo and slower demand growth for the fleet.
According to Drewry, the simple multipurpose fleet is in decline, with little investment beyond replacement tonnage. However, the analyst said, the more advanced vessels i.e. the project carriers, are seeing fleet growth of around 3.5% per annum to the end of 2018. The bad news for those carriers is that the cargo for these vessels is directly affected by the sector's slowdown.