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The dry bulk shipping market size is estimated to grow at a CAGR of 3.87% between 2022 and 2027 and the size of the market is forecast to increase by USD 3,304.17 million. The growth of the market depends on several factors, such as rising seaborne trade across the world, an increase in iron ore and coal transportation, and a growing focus on infrastructure development.
This report extensively covers market segmentation by type (iron ore, coal, grains, bauxite, and others), vessel orientation (Capesize, Panama, Supramax, and Handysize), and geography (APAC, Europe, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria, and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Dry Bulk Shipping Market Customer Landscape
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Rising seaborne trade across the world is the key factor driving the global dry bulk shipping market growth. The growth of maritime dry bulk trade will increase the demand for dry and tanker shipping containers as dry containers can transport cargo overseas with minimal damage to the cargo compared to barges and other vessels. Over the past decade, global maritime trade has gradually increased despite a range of challenges due to the adverse effects of the global recession and the mismatch between supply and demand for products and commodities. Growth in maritime trade is expected to boost demand for ships, which will create demand for marine electronics. Maritime trade also plays a vital role in the economic expansion and growth of countries and different regions.
Large emerging economies such as China and India have become important sources of capital goods and raw materials. Maritime transport accounts for the majority of transportation. It became necessary for delivery from a distant supplier. Commodities such as ore, coal, and grain are transported in large quantities by container ships. The Asia-Pacific region will experience rapid maritime trade growth with high contributions from China, South Korea, and India to maritime trade. These factors are expected to boost the growth of the market during the forecast period.
The increasing use of container security and tracking solutions will fuel the global dry bulk shipping market growth. After rising piracy and armed robbery, security concerns are rising among end-user industries in the market. However, containers with GPS tracking systems can be easily tracked. Therefore, rising security concerns, the growing need to streamline logistics management systems to enhance digital connectivity, and the growing global adoption of the Internet of Things (IoT) are driving the growth of container security and tracking system solutions. The deployment of IoT-enabled container security and tracking solutions in global trade will boost demand for rental containers equipped with such solutions.
In addition, the federal government in the United States and organizations such as the World Shipping Council (WSC), the International Maritime Organization (IMO), and the International Organization for Standardization (ISO) have established several cargo security regulations and regulations to reduce losses in transit, which will improve efficiency across the supply chains. Such regulations create or deploy loss prevention, theft prevention, and tracking systems. These solutions are expected to boost the growth of the market during the forecast period.
The fluctuations in commodity prices can majorly impede the growth of the market. Commodity price volatility is one of the significant impediments to the market. Commodity prices can be affected by many factors, including changes in supply and demand, geopolitical events, and global economic conditions. Low commodity prices can reduce demand for bulk transportation services as companies reduce production and shipment volumes to keep costs down. Conversely, when commodity prices are high, demand for dry bulk shipping services may increase as businesses try to increase production and shipment volumes to take advantage of rising prices.
Fluctuations in commodity prices can also affect the competitive environment for dry bulk shipping. Carriers with long-term contracts and customer relationships may be less susceptible to price fluctuations than carriers that rely on spot market trading. A shipping company that operates in a niche market or specializes in a particular commodity may be more sensitive to commodity price fluctuations than a company with a diverse customer base. In addition, volatility in commodity prices can affect shipping lines' financial performance, which can affect shipping rates and profitability. Therefore, commodity price volatility is likely to pose a major challenge to the growth of the market during the forecast period.
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Belships ASA: The company offers different types of dry bulk shipping solutions and services across the world.
Bulk Marine: The company provides dry bulk shipping operators as well as dry bulk shipping solutions globally for all shipping needs.
We also have detailed analyses of the market’s competitive landscape and offer information on 18 market vendors, including:
The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the vendors. The analysis classifies vendors into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business which in turn can help a client make the best decision.
The iron ore segment will contribute a major share of the market, as it is one of the most important commodities transported on bulk carriers. The iron ore segment showed a gradual increase in market share with USD 6,344.93 million in 2017 and continued to grow until 2021. Iron ore is a type of mineral that is mined and processed into iron used to make steel. Iron ore is typically transported from mines to steel mills by rail or conveyor belt and loaded onto bulk carriers for shipment to various countries. Demand for iron ore is driven by the global steel industry, which accounts for approximately 98% of iron ore consumption.
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Iron ore is one of the most important commodities transported by bulk carriers and represents a significant portion of the total bulk cargo volume. Demand for iron ore transportation is driven by the global steel industry, which uses iron ore to produce steel. The largest iron ore producers are Australia, Brazil, and China, which together account for a significant portion of the world's iron ore production. These countries are also major exporters of iron ore, with iron ore shipments contributing significantly to the demand for dry bulk shipping services. Freight rates for iron ore transportation are affected by a variety of factors, including vessel availability, supply and demand dynamics, and global economic conditions. Iron ore and steel prices are also closely related, and fluctuations in these prices can affect the demand for dry bulk shipping services. Iron ore is an important raw material used in many industries, and increasing transportation of this important raw material between producing and consuming countries will drive segment growth in the market during the forecast period.
Capesize is the designation for the largest class of bulk carriers that can carry mainly various types of bulk cargo. Capsizing ships are used to transport iron ore and coal. The term Capesize is used because these ships cannot pass the Panama Canal and were therefore forced to bypass the Cape of Good Hope. Rapid industrialization and liberalization in emerging countries are increasing the demand for raw materials such as iron ore and coal. These raw materials are usually transported as bulk cargo in ocean trade. Coal and iron ore are some of the most important raw materials for generating electricity and building sustainable infrastructure. A rapid increase in electricity demand boosted imports and exports of coal. Such factors are expected to drive the growth of the market during the forecast period.
APAC is estimated to contribute 56% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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Increased demand for dry bulk shipping is mainly seen in China and India. Because these countries are heavily involved in dry cargo import and export activities. Due to the large populations of China and India, large amounts of raw materials are required. The need for dry goods in these countries stimulates the need for dry containers. Also, bulk production in China is increasing. In addition, the development of inter- and intra-Asian trade is spurring the growth of container shipping in the region. Many Asian countries are liberalizing trade barriers to facilitate trade opportunities between Asia. All these trading opportunities are expected to influence container demand from various end-users around the world.
In 2020, the growth of several industries across the world was impacted by the COVID-19 pandemic, slowing manufacturing activity and lowering commodity prices. Additionally, the pandemic caused significant disruption to supply chains. The economic slowdown and supply chain disruptions across the world significantly hampered market growth in 2020 and the first half of 2021. However, lockdown restrictions were lifted in late 2021 due to a massive vaccination campaign globally. This resulted in the resumption of transport and logistics, resuming import and export activities, and increased demand for dry bulk shipping services in the first half of 2021.
The dry bulk shipping market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Dry Bulk Shipping Market Scope |
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Report Coverage |
Details |
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Page number |
176 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.87% |
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Market growth 2023-2027 |
USD 3,304.17 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.45 |
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Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 56% |
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Key countries |
US, China, India, Germany, and Denmark |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aspo Plc, Belships ASA, Berge Bulk Ltd., Bulk Marine, Dampskibsselskabet Norden AS, Diana Shipping Inc., Eagle Bulk Shipping Inc., Egon Oldendorff Management GmbH, Genco Shipping and Trading Ltd., Globus Maritime Ltd., Golden Ocean Group Ltd., Gulf Agency Co. Ltd., Marquette Transportation Co. LLC, Masterbulk NV, Mitsui and Co. Ltd., Naviera Ultranav Ltda., Nippon Yusen Kabushiki Kaisha, Pacific Basin Shipping Ltd., Star Bulk Carriers Corp., and Western Bulk Management AS |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Vessel Orientation
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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