The global fleet of 25,000-40,000dwt
Handysize and 40,000-65,000dwt
Handymax ships grew 2.8% net and
4.7% net respectively in 2016
(2015: +2.7% and +7.1%), and the
dry bulk fleet overall grew 2.3%.
New ship deliveries represented
5.9% of existing dry bulk capacity,
which was down compared to
2015 and short of the scheduled
orderbook for the year by a record
49%. Deliveries of new vessels were
partly offset by increased scrapping,
resulting in continued net growth in
the global fleet.
All-time low freight earnings
encouraged record scrapping in the
first quarter, but scrapping activity
reduced thereafter on improved
freight market conditions resulting
in the deletion of 3.6% of total dry
bulk capacity and 3.1% of Handysize
capacity in the year overall.
The larger vessels withdrawn from
the market for idling or lay-up in the
first half of the year were largely
reactivated as the freight market
improved.
The general oversupply was partly
compounded by an increase in ship
operating speeds as the market
improved from mid-February,
However, higher oil prices were
positive for the freight market in
the second half of the year as
increased fuel prices encouraged
slower ship speeds even when
freight rates increased.
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