Cargill says fewer orders of new vessels pushing dry bulk shipping
A lack of orders for new vessels is supporting the dry bulk freight market, says a senior executive at grain giant Cargill.
Agribusiness giant, Cargill, says dry bulk shipping is being bolstered by a lack of newbuildings, as demand for commodities accelerates, reports Reuters.
The Baltic Exchange’s main sea freight index, which gauges the cost of shipping commodities such as grain, iron ore, cement, coal and fertiliser, has rallied close to an 11-year high this week, helped by rising rates for larger capesize ships.
“We are seeing demand continuing to be strong, especially on the main commodities,” Jan Dieleman, president of Cargill’s ocean transportation division, told Reuters.
Cargill is one of the world’s biggest charterers of ships with between 600 to 700 vessels in its chartered fleet, of which 90% are for dry bulk.
