By Mikael Holter and Alex Longley

(Bloomberg) — Shippers ferrying coal, iron ore and grains throughout the globe have by no means had it this dangerous and may count on little respite for one more two years, in accordance with Golden Ocean Group Ltd., an organization half owned by Norway-born billionaire John Fredriksen.

An monumental oversupply of vessels isn’t sustainable and the dry-bulk trade will quickly be contending with “a lot of bankruptcies,” Herman Billung, chief government officer of Golden Ocean, stated at a convention in Oslo on Thursday. Fredriksen, whose private fortune is about $10.5 billion, is the corporate’s largest investor, in accordance with knowledge compiled by Bloomberg.

“In dry bulk, we haven’t seen as bad a market since the Viking age,” Billung stated in an interview after talking. “Has it ever been this bad in modern history? I would say no.”

Dry bulk transport has been hit by a power oversupply in addition to faltering demand from China, the place the economic system is rising extra slowly and shifting away from commodity-intensive heavy industries. A shipbuilding increase noticed fleet development double within the seven years by December on the idea China’s economic system would proceed rising at a file tempo. With extra ships accessible than the market requires, the typical each day lease to a 1,000-foot lengthy Capesize bulk service has fallen under $1,000 for the primary time ever.

Golden Ocean shares rose 0.2 p.c to five.03 kroner (58 cents), giving the corporate a market worth of two.62 billion kroner.

© 2016 Bloomberg L.P