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The dry bulk shipping market size is estimated to increase by USD 3.64 billion, at a CAGR of 4.09% between 2023 and 2028. The market experiences growth propelled by the escalation of global seaborne trade, a surge in iron ore and coal transportation, and an increasing emphasis on infrastructure development. These interconnected trends reflect dynamic shifts in global commerce and economic development, driving demand for maritime transport services and related infrastructure projects. The rising volume of seaborne trade underscores the pivotal role of maritime logistics in facilitating international trade flows and supply chain efficiency. Additionally, the heightened transportation of iron ore and coal signifies sustained demand for raw materials in various industries, contributing to market expansion. Furthermore, the growing focus on infrastructure development reflects concerted efforts to bolster economic growth and connectivity, creating opportunities for market stakeholders across diverse sectors.
Market Forecast 2024-2028
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The market share growth by the capesize segment will be significant during the forecast period. Capesize is a term used for bulk ships belonging to the largest class, which can carry various types of cargo in bulk predominantly. Capsize vessels are used for the transposition of iron ore and coal.
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The capesize segment was the largest and was valued at USD 6.45 billion in 2018. The term Capesize is used as these vessels cannot pass through the Panama Canal and thus are compelled to go around the Cape of Good Hope. The rapid rise in industrialization, along with the liberalization of emerging economies, has led to a rise in the demand for commodities such as iron ore and coal. These commodities are usually transported in seaborne trading in bulk. Coal and iron ore are some key raw materials used in the production of electricity and the building of sustainable infrastructure. The rapid surge in electricity demand has boosted the import and export of coal. Such factors are expected to drive the growth of the global market during the forecast period.
Based on type, the market has been segmented into iron ore, coal, grains, bauxite, and others. The iron ore?segment will account for the largest share of this segment.? Iron ore is a type of mineral that is mined and processed to produce iron, which is used in the production of steel. It is one of the most important commodities transported by dry bulk ships. Iron ore is usually transported from the mine site to the steel mill by rail or conveyor and then loaded onto dry bulk ships for transportation to various countries. The demand for iron ore is driven by the global steel industry, which accounts for around 98% of iron ore consumption. In addition, the prices of iron ore and steel are also closely linked, and any fluctuations in these prices can impact the demand for the services. Iron ore is an important raw material used in many industries, and the increasing transportation of this essential raw material between producing and consuming countries will drive the growth of the segment in the market during the forecast period.
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APAC is estimated to contribute 56% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. The growth in demand is primarily experienced in China and India, as these countries are extensively engaged in the export and import activities of dry freight. The high population in China and India has created a need for many commodities. The dry commodity requirement in these countries will stimulate the need for dry containers. Furthermore, dry bulk production in China is increasing. Moreover, Various initiatives are being taken to facilitate and enhance the ease of doing business and improve operational efficiency through the use of technology.
For instance, the Government of India is digitalizing its maritime logistics ecosystem to increase exports. It has created a unified logistics system, namely the National Logistics Portal (NLP), which integrates all supply chain elements in India across various modes of transport. The NLP Marine system is envisaged to address most of the challenges faced by the current system by providing a single-window platform for maritime stakeholders, including ports, shipping lines, regulatory bodies, and service providers. A gradual recovery of the economy in APAC, with the resumption of business operations in Japan and China, among other countries, will lead to the growth of the market in the region during the forecast period.
The market experiences a surge in demand driven by the industrial transportation of coal and steel, fueled by global industrialization and Urbanisation. This demand is further accentuated by the requirement for essential raw materials such as iron ore, coal, grain, and bauxite, crucial for various industrial processes. As infrastructure projects continue to expand globally, the necessity for dry bulk shipping services rises to transport construction materials and commodities. Concurrently, automation and advancements in automotive production planning systems contribute to market growth. One notable trend in the market is the adoption of container security and tracking solutions. These technologies address concerns regarding cargo safety and operational efficiency. By offering real-time tracking and monitoring of shipments, they enhance supply chain visibility, mitigate risks, and ensure compliance with regulatory requirements. The product lines include comprises Capesize, Panama, Supramax, and Handysize. However, challenges persist, including the volatility of commodity prices and escalating trade tensions between nations. Fluctuations in prices impact shipping companies' profitability, while trade tensions can disrupt global supply chains and route optimization efforts. Moreover, adhering to safety and environmental regulations poses challenges, necessitating investments in sustainable practices to navigate regulatory complexities.
The surge in seaborne trades of dry bulk cargo is poised to fuel the demand for dry and tanker shipping containers, as they offer efficient cargo transportation with minimal damage risks compared to other vessels like barges. Despite challenges such as global economic recessions and demand-supply imbalances, global seaborne trade has been steadily increasing over the past decade. This growth trend is expected to propel the demand for ships, leading to a corresponding surge in the requirement for marine electronics.
Moreover, with sea transportation playing a pivotal role in delivering goods from distant suppliers, container ships are crucial for transporting bulk commodities like ores, coal, and grains. Rapid growth in seaborne trade, especially in the Asia-Pacific region driven by countries like China, South Korea, and India, is anticipated to drive market growth in the forecast period.
There is an increase in safety concerns among end-user industries in the global dry bulk shipping market following a rise in piracy and armed robbery incidents. However, containers that incorporate GPS tracking systems can easily be traced. Thus, growing safety and security concerns, the increasing need to optimize logistics management systems to improve digital connectivity, and the growing global use of the Internet of Things (IoT) will augment the growth of container security and tracking system solutions. The integration of maritime information technologies, including GPS tracking and IoT-enabled container security solutions, enhances transparency and security in global trade logistics. These technologies enable real-time monitoring of container movements, ensuring efficient supply chain management and mitigating risks associated with piracy and theft.
In addition, the federal government in the US and organizations such as the World Shipping Council (WSC), the International Maritime Organization (IMO), and the International Standardization Organization (ISO) have introduced several regulations and legislation for cargo safety to reduce the losses in the supply chain and improve the overall efficiency of the supply chain. Such regulations have led to the creation or deployment of loss prevention and anti-theft security and tracking systems. These solutions are expected to enhance the growth of the dry bulk shipping market during the forecast period.
Trade tensions between countries can have a significant impact on the global dry bulk shipping market. Trade tensions arise when countries impose tariffs or other trade barriers on imports from other countries, which can reduce the demand for commodities and other goods transported by ships. When trade tensions increase, countries may become more protective of their domestic industries, leading to reduced imports and exports. For instance, the Black Sea port region, which serves as a major supply route for goods traveling from former Soviet Union countries to Europe and Asia, has also seen operations come to a halt due to the ongoing Russia-Ukraine war tension. Major shipping firm Maersk has also stopped doing business in Russia. This can result in lower demand for dry bulk shipping services, particularly for commodities such as coal, iron ore, and grain that are often traded internationally. Trade tensions can also disrupt shipping routes and increase shipping costs.
For instance, when tariffs are imposed on imports from a particular country, shipping companies may need to find alternative routes or sources of goods, which can increase transportation costs and lead to longer transit times. Trade tensions can also impact the competitive landscape of the dry bulk shipping industry. Thus, growing trade tensions between countries can become a major challenge to the growth of the global dry bulk shipping market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AP Moller Maersk AS - The company offers dry bulk shipping vessels such as 40 standard steel, 20 standard steel, and 40 High cube steel.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including AP Moller Maersk AS, Cargill Inc., COSCO Shipping International Co. Ltd., Diana Shipping Inc., Eagle Bulk Shipping Inc., Egon Oldendorff Management GmbH, Gearbulk Management Switzerland AG, Genco Shipping and Trading Ltd., Golden Ocean Group Ltd., Grindrod Shipping Holdings Ltd., Hapag Lloyd AG, HMM Europe Ltd., John Swire and Sons Ltd., Kawasaki Kisen Kaisha Ltd., Mitsui O.S.K. Lines Ltd., Nippon Yusen Kabushiki Kaisha, Pacific Basin Shipping Ltd., Pan Ocean Co. Ltd., Precious Shipping Public Co. Ltd., and Star Bulk Carriers Corp.
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The Dry Bulk Shipping Market operates within a complex regulatory framework where digital technologies play an increasingly vital role in optimizing operations and enhancing efficiency. With the surge in steel demand and growing focus on environmental sustainability, the market navigates through various challenges, including fluctuating commodity prices and rising trade tensions. Sea travel remains pivotal, especially with the rise of urbanization and the recent disruptions caused by the epidemic. Market players like GAC, Berge Bulk, and Western Bulk are significant industry influencers, managing a diverse fleet of ships to meet international trade demands. Despite obstacles like high transportation costs and trading obstructions, the market witnesses growth fueled by the expanding coal industry and rising steel production. The liberalization of national economies and robust iron ore prices, especially driven by Chinese iron ore imports and Western Australia exports, further stimulate market dynamics amidst a backdrop of accelerating economic growth and rising urbanization.
Moreover, Urbanization has become a defining feature of modern societies, driving demand for efficient transportation solutions like Panamax and Handymax vessels, especially in regions with significant bauxite/alumina trade. As cities expand, the need for data synthesis and analysis grows, shaping various market facets and influencing trends in the growing coal industry and other sectors. However, the challenges of high transportation and infrastructure costs persist, impacting the efficiency of bulk carriers transporting goods like cement in their cargo holds. Despite these hurdles, the continuous growth of global trade volumes and time charter rates suggests sustained demand for larger vessels such as Capesize ships, driven in part by the rising population and the ongoing trend of higher urbanization worldwide.
Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.09% |
Market Growth 2024-2028 |
USD 3.64 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.63 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 56% |
Key countries |
US, China, India, Germany, and Denmark |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AP Moller Maersk AS, Cargill Inc., COSCO Shipping International Co. Ltd., Diana Shipping Inc., Eagle Bulk Shipping Inc., Egon Oldendorff Management GmbH, Gearbulk Management Switzerland AG, Genco Shipping and Trading Ltd., Golden Ocean Group Ltd., Grindrod Shipping Holdings Ltd., Hapag Lloyd AG, HMM Europe Ltd., John Swire and Sons Ltd., Kawasaki Kisen Kaisha Ltd., Mitsui O.S.K. Lines Ltd., Nippon Yusen Kabushiki Kaisha, Pacific Basin Shipping Ltd., Pan Ocean Co. Ltd., Precious Shipping Public Co. Ltd., and Star Bulk Carriers Corp. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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