LONDON, Oct 7 (Reuters) – Dry bulk transport faces extra earnings ache as a slowdown in commodities demand and a glut of ships are anticipated to pile on the strain properly into 2016, ship business gamers stated on Wednesday.

The dry cargo transport business has been hit exhausting this 12 months by the worldwide commodities meltdown with common earnings for big capesize ships – which haul iron ore and coal – barely overlaying working prices this 12 months and general dry bulk charges falling to their lowest ranges in many years.

“Our view is that the first half of 2016 is going to be challenging especially as a lot of the new buildings (new ships on order) that were supposed to be delivered in 2015 are being pushed back to 2016,” Christos Begleris, co-chief monetary officer with Star Bulk, informed a Capital Link transport convention in London.

“Most of those would have to be delivered in 2016 and therefore the supply-demand equation is going to be challenged in the first half of the year.”

Jens Ismar, chief government of worldwide ship operator Western Bulk, stated 2016 was “going to be a tough year”.

“The market needs to rebalance and work on the supply side,” Ismar informed the convention.

The robust situations have been compounded by slowing demand for industrial commodities in China and orders for ships anticipated to be delivered in coming months.

“The uncertainty in China is not to be under-estimated  China is in a transition,” stated Herman Billung, chief government with Bermuda-headquartered proprietor Golden Ocean. “My view is it is more a supply driven situation than demand driven right now.”

In September, Japanese bulk provider Daiichi Chuo Kisen Kaisha stated it had filed for cover from collectors – the second casualty in a month. Earlier in September, non-public fairness backed Global Maritime Investment Cyprus Ltd filed for Chapter 11 chapter safety within the United States.

“No one knows exactly when the market will recover. The number one priority is to preserve cash,” stated George Achniotis, chief monetary officer with Navios Maritime Holdings. (Reporting by Jonathan Saul; modifying by Adrian Croft)

(c) Copyright Thomson Reuters 2015.

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