Thursday 26 November 2009

Handysize Sector to Fare Better than Other Bulkers

Thursday, 26 November 2009

Handysizes would give good margins as they have been the segment with the biggest short fall and the highest scrapping rates so this year there has been no overall growth.

Handies will be slightly more isolated to other sectors going forward as the larger ship types have such huge orderbooks still to deliver.

Aside from that Indonesia needs to have significantly more powerplant as currently they are suffering from rolling black outs. The target for the next few years is very aggressive in which the government has set a 10,000 megawatts and most of them will be coal fired. Given Indonesian geography, the most suitable size for bulker will be the handysize and therefore the demand for this type of ship will increase.

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