Bulk has not bottomed out yet: Keith Denholm

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30 Sep 2009

Two of Asia’s best known bulk operators and commentators have poured cold water on any immediate prospect for a recovery in the sector, while speaking at Marine Money’s Singapore conference this week. Huxley, chief executive of Wah Kwong Maritime Transport Holdings, said the supply side looked “pretty grim”.
“This onslaught of tonnage coming on the market which is going to shape industry prospects for the rest of the year doesn’t look good, particularly for capesizes,” he said.
“The next year might just be what we feared 2009 would be. I think we have just delayed the problem,” Huxley said.
“I think long term the problems of expanded supply, both from new shipyards and increased productivity at existing yards, are just not going to go away.”
Keith Denholm, commercial director at Pacific Carriers, was just as pessimistic.
“Quite frankly we have not reached the bottom yet and a lot could happen on the way down,” he said.
“I’m not saying the demand is going to go away there is just not sufficient demand to meet the capacity that is coming into the market.”

Source: SeaTradeAsia-Online