Mavrinac said that upcoming iron ore price negotiations with Chinese steel makers should lead to restocking, which will keep drybulk ships in high demand. Iron ore capacity additions in the second half of this year will also help the drybulk market, he said.
U.S. grain shipments should boost demand for ships as well, he said, especially as the fall harvest season approaches.
Furthermore, demand remains peaked for coal in both power generation and steel making, Mavrinac said.
With these factors, combined with delays in drybulk ship deliveries, Mavrinac predicts that demand will outpace supply in the market through at least next year.