Dry Bulk Shipping Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, India, Germany, Denmark - Size and Forecast 2024-2028

Dry Bulk Shipping Market Forecast 2024-2028

The dry bulk shipping market size is estimated to increase by USD 3.64 billion, growing at a CAGR of 4.09% between 2023 and 2028. Market expansion hinges on several factors, including the surge in global maritime trade, heightened transportation of iron ore and coal, and escalating emphasis on infrastructure expansion. Conversely, challenges such as fluctuating commodity prices, escalating trade tensions among nations, and adherence to safety and environmental shipping regulations impede market growth.

What will be the Size of the Dry Bulk Shipping Market During the Forecast Period?

Dry Bulk Shipping Market Forecast 2024-2028

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Market Segmentation

The report includes a comprehensive outlook on the market, offering forecasts for the industry segmented by Product, which comprises Capesize, Panama, Supramax, and Handysize. Additionally, it categorizes Types into iron ore, coal, grains, bauxite, and others, and covers Geography regions, including North America, APAC, Europe, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.

Product Segment Analysis: 

The market share growth by the capesize segment will be significant during the forecast period. Capesize is a term used for bulk ships belonging to the largest class, which can carry various types of cargo in bulk predominantly. Capsize vessels are used for the transposition of iron ore and coal. 

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The capesize segment was the largest and was valued at USD 6.45 billion in 2018. The term Capesize is used as these vessels cannot pass through the Panama Canal and thus are compelled to go around the Cape of Good Hope. The rapid rise in industrialization, along with the liberalization of emerging economies, has led to a rise in the demand for commodities such as iron ore and coal. These commodities are usually transported in seaborne trading in bulk. Coal and iron ore are some key raw materials used in the production of electricity and the building of sustainable infrastructure. The rapid surge in electricity demand has boosted the import and export of coal. Such factors are expected to drive the growth of the global market during the forecast period.

Type Segment Analysis 

Based on type, the market has been segmented into iron ore, coal, grains, bauxite, and others. The iron ore?segment will account for the largest share of this segment.?  Iron ore is a type of mineral that is mined and processed to produce iron, which is used in the production of steel. It is one of the most important commodities transported by dry bulk ships. Iron ore is usually transported from the mine site to the steel mill by rail or conveyor and then loaded onto dry bulk ships for transportation to various countries. The demand for iron ore is driven by the global steel industry, which accounts for around 98% of iron ore consumption. In addition, the prices of iron ore and steel are also closely linked, and any fluctuations in these prices can impact the demand for the services. Iron ore is an important raw material used in many industries, and the increasing transportation of this essential raw material between producing and consuming countries will drive the growth of the segment in the market during the forecast period.

Regional Analysis

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APAC is estimated to contribute 56% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.  The growth in demand is primarily experienced in China and India, as these countries are extensively engaged in the export and import activities of dry freight. The high population in China and India has created a need for many commodities. The dry commodity requirement in these countries will stimulate the need for dry containers. Furthermore, dry bulk production in China is increasing. Moreover, Various initiatives are being taken to facilitate and enhance the ease of doing business and improve operational efficiency through the use of technology.

For instance, the Government of India is digitalizing its maritime logistics ecosystem to increase exports. It has created a unified logistics system, namely the National Logistics Portal (NLP), which integrates all supply chain elements in India across various modes of transport. The NLP Marine system is envisaged to address most of the challenges faced by the current system by providing a single-window platform for maritime stakeholders, including ports, shipping lines, regulatory bodies, and service providers. A gradual recovery of the economy in APAC, with the resumption of business operations in Japan and China, among other countries, will lead to the growth of the market in the region during the forecast period.

Market Dynamics and Customer Landscape

The market experiences a surge in demand driven by the industrial transportation of coal and steel, fueled by global industrialization and urbanization. This demand is further accentuated by the requirement for essential raw materials such as iron ore, coal, grain, and bauxite, crucial for various industrial processes. As infrastructure projects continue to expand globally, the necessity for dry bulk shipping services rises to transport construction materials and commodities. Concurrently, automation and advancements in automotive production planning systems contribute to market growth.

One notable trend in the market is the adoption of container security and tracking solutions. These technologies address concerns regarding cargo safety and operational efficiency. By offering real-time tracking and monitoring of shipments, they enhance supply chain visibility, mitigate risks, and ensure compliance with regulatory requirements. The product lines include comprises Capesize, Panama, Supramax, and Handysize. However, challenges persist, including the volatility of commodity prices and escalating trade tensions between nations. Fluctuations in prices impact shipping companies' profitability, while trade tensions can disrupt global supply chains and route optimization efforts. Moreover, adhering to safety and environmental regulations poses challenges, necessitating investments in sustainable practices to navigate regulatory complexities.

Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.    

Driver- Rising global seaborne trade

The surge in seaborne trades of dry bulk cargo is poised to fuel the demand for dry and tanker shipping containers, as they offer efficient cargo transportation with minimal damage risks compared to other vessels like barges. Despite challenges such as global economic recessions and demand-supply imbalances, global seaborne trade has been steadily increasing over the past decade. This growth trend is expected to propel the demand for ships, leading to a corresponding surge in the requirement for marine electronics. With sea transportation playing a pivotal role in delivering goods from distant suppliers, container ships are crucial for transporting bulk commodities like ores, coal, and grains. Rapid growth in seaborne trade, especially in the Asia-Pacific region driven by countries like China, South Korea, and India, is anticipated to drive market growth in the forecast period.

Trends- Increasing use of container security and tracking solutions

There is an increase in safety concerns among end-user industries in the global dry bulk shipping market following a rise in piracy and armed robbery incidents. However, containers that incorporate GPS tracking systems can easily be traced. Thus, growing safety and security concerns, the increasing need to optimize logistics management systems to improve digital connectivity, and the growing global use of the Internet of Things (IoT) will augment the growth of container security and tracking system solutions. The use of container security and tracking solutions backed by the IoT in global trade will drive the demand for leased containers equipped with such solutions.

In addition, the federal government in the US and organizations such as the World Shipping Council (WSC), the International Maritime Organization (IMO), and the International Standardization Organization (ISO) have introduced several regulations and legislation for cargo safety to reduce the losses in the supply chain and improve the overall efficiency of the supply chain. Such regulations have led to the creation or deployment of loss prevention and anti-theft security and tracking systems. These solutions are expected to enhance the growth of the dry bulk shipping market during the forecast period.

Challenge- Growing trade tensions between countries

Trade tensions between countries can have a significant impact on the global dry bulk shipping market. Trade tensions arise when countries impose tariffs or other trade barriers on imports from other countries, which can reduce the demand for commodities and other goods transported by ships. When trade tensions increase, countries may become more protective of their domestic industries, leading to reduced imports and exports. For instance, the Black Sea port region, which serves as a major supply route for goods traveling from former Soviet Union countries to Europe and Asia, has also seen operations come to a halt due to the ongoing Russia-Ukraine war tension. Major shipping firm Maersk has also stopped doing business in Russia. This can result in lower demand for dry bulk shipping services, particularly for commodities such as coal, iron ore, and grain that are often traded internationally. Trade tensions can also disrupt shipping routes and increase shipping costs.

For instance, when tariffs are imposed on imports from a particular country, shipping companies may need to find alternative routes or sources of goods, which can increase transportation costs and lead to longer transit times. Trade tensions can also impact the competitive landscape of the dry bulk shipping industry. Thus, growing trade tensions between countries can become a major challenge to the growth of the global dry bulk shipping market during the forecast period.

Who are the Major Dry Bulk Shipping Market Companies?

Companies 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.

AP Moller Maersk AS  - The company offers dry bulk shipping vessels such as 40 standard steel, 20 standard steel, and 40 High cube steel.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including AP Moller Maersk AS, Cargill Inc., COSCO Shipping International Co. Ltd., Diana Shipping Inc., Eagle Bulk Shipping Inc., Egon Oldendorff Management GmbH, Gearbulk Management Switzerland AG, Genco Shipping and Trading Ltd., Golden Ocean Group Ltd., Grindrod Shipping Holdings Ltd., Hapag Lloyd AG, HMM Europe Ltd., John Swire and Sons Ltd., Kawasaki Kisen Kaisha Ltd., Mitsui O.S.K. Lines Ltd., Nippon Yusen Kabushiki Kaisha, Pacific Basin Shipping Ltd., Pan Ocean Co. Ltd., Precious Shipping Public Co. Ltd., and Star Bulk Carriers Corp.

Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Product Outlook
  • Capesize
  • Panama
  • Supramax
  • Handysize

• Type Outlook 
  • Iron ore
  • Coal
  • Grains
  • Bauxite
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing significant growth driven by various factors such as the transportation of iron ore and coal, infrastructure development, and increasing steel demand. With the rise in urbanization and accelerating economic growth, there's a surge in global trade volumes, particularly in commodities like bauxite, alumina, and steel. Despite challenges like high transportation costs and trading obstructions, the market is buoyed by robust iron ore prices and Chinese imports. Major players like GAC, Berge Bulk, and Western Bulk are expanding their fleets to meet the growing demand. As economies liberalize and populations rise, the market is poised for continued expansion in the coming years.

Furthermore, the market is influenced by a myriad of factors shaping its trajectory. Key among these is the transportation of iron ore and coal, which are crucial commodities driving global trade. The regulatory framework governing maritime transport, coupled with the adoption of digital technologies, is reshaping the industry towards greater efficiency and sustainability. Environmental considerations are increasingly factored into operations, reflecting a broader trend towards environmental sustainability.

Urbanization trends play a pivotal role, driving demand for raw materials like iron ore and coal for infrastructure and construction projects. However, the recent epidemic has introduced uncertainties into the market, impacting sea travel and trade flows. Vessel size classifications such as Panamax and Handymax, along with cargo holds and fleet composition, are central to the logistics of dry bulk shipping.

International trade dynamics, including time charter rates and the prevalence of Capesize ships, shape market conditions. Liberalization of national economies has spurred growth, particularly evident in Chinese iron ore imports and Western Australia's exports. As populations rise and urbanization intensifies, demand for steel production grows, further bolstering the market. In navigating these diverse market facets, industry influencers and robust vendor selection methodologies play a critical role in shaping the future landscape of the sector.

Urbanisation and rising population fuel demand for construction materials and energy resources, propelling the movement of iron ore, coal, and bauxite/alumina across global trade routes. As cities expand, so does the need for infrastructure development, driving the demand for steel and cement production. Bauxite/Alumina transport is integral to the production of aluminum, serving diverse industries such as aerospace, automotive, and construction. The efficient movement of bauxite and alumina relies on robust transportation networks and strategic vendor selection methodologies.

Data synthesis plays a crucial role in optimizing shipping routes, vessel scheduling, and cargo handling operations. Leveraging data analytics and predictive modeling enables shipping companies to enhance efficiency, reduce costs, and mitigate risks. The growing coal industry necessitates efficient transportation solutions to meet demand from power plants, steel mills, and industrial manufacturers. However, high transportation and infrastructure costs pose challenges, impacting profitability and market competitiveness. A diverse fleet of ships caters to the unique requirements of dry bulk shipping, ranging from bulk carriers and specialized vessels to container ships and barges. Strategic fleet management is essential to optimize vessel utilization and minimize operating expenses.

Western Australia emerges as a key player in iron ore and coal exports, leveraging its rich natural resources and strategic geographical location. As a major importer of iron ore and coal, China drives global demand, influencing market dynamics and trade patterns. Major trends in the dry bulk shipping market include the adoption of eco-friendly technologies, such as fuel-efficient engines and emission reduction measures, to comply with environmental regulations and sustainability goals. The rising steel production drives demand for iron ore and coal, supporting the growth of the dry bulk shipping market. As steel-intensive industries expand, the need for efficient transportation solutions becomes increasingly critical.

Dry Bulk Shipping Market Scope
Report Coverage	Details
Page number	177
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 4.09%
Market Growth 2024-2028	USD 3.64 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	3.63
Regional analysis	APAC, Europe, North America, South America, and Middle East and Africa
Performing market contribution	APAC at 56%
Key countries	US, China, India, Germany, and Denmark
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	AP Moller Maersk AS, Cargill Inc., COSCO Shipping International Co. Ltd., Diana Shipping Inc., Eagle Bulk Shipping Inc., Egon Oldendorff Management GmbH, Gearbulk Management Switzerland AG, Genco Shipping and Trading Ltd., Golden Ocean Group Ltd., Grindrod Shipping Holdings Ltd., Hapag Lloyd AG, HMM Europe Ltd., John Swire and Sons Ltd., Kawasaki Kisen Kaisha Ltd., Mitsui O.S.K. Lines Ltd., Nippon Yusen Kabushiki Kaisha, Pacific Basin Shipping Ltd., Pan Ocean Co. Ltd., Precious Shipping Public Co. Ltd., and Star Bulk Carriers Corp.
Market dynamics	Parent market analysis, Market forecasting, 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 the forecast period.
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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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