Some sobering feedback from the pinnacle of the world’s largest transport affiliation on the perilous state of dry bulk market, presently within the grips of the worst business downturn in current reminiscence.

In a message forward of Posidonia 2016, BIMCO President Philippe Louis-Dreyfus described situations within the dry bulk market as “terrible” and warned {that a} full market restoration lies solely within the arms of the world’s shipowners, estimating {that a} return to income is feasible in 2019 provided that powerful and sustained measures are taken now and 12 months on 12 months by shipowners.

Using a brand new inner mannequin to investigate restoration of down markets, BIMCO says that dry bulk restoration will take a “zero supply side growth” situation, that means shipowners might want to neutralize the supply of recent ships yearly by scrapping an equal quantity of capability from the present fleet.

“We cannot expect to be helped by growth in demand, the recovery of the market is wholly and exclusively in the hands of us, the shipowners,” commented Louis-Dreyfus. “The medicine is not going to be easy to take, zero supply growth has been achieved only three times in recent history, during the 1980s and 1990s. The task ahead of us is huge and must be sustained year after year.”

“We need to demolish an enormous number of ships and refrain from building new ships,” Louis-Dreyfus added.

Louis-Dreyfus additionally insisted that scrapping older vessels just isn’t solely a great way ahead to a greater market, but in addition important for setting and the protection of crews.

The Posidonia convention held each two years in Athens, Greece is taken into account one of many world’s largest transport conferences, catering primarily to Greek transport and shipowners.