Worldwide, a total of 720 capesize newbuildings have hit the water since July 2009.
Barclays Capital analyst Jon Windham says, “The orderbook is no longer an issue, too many vessels on-the-water is the issue today.”
“Taking account for scrapping and demand growth, we estimate that the capesize dry bulk fleet is currently over-supplied by at least 350 vessels, or 25% of current capacity.”
A huge surplus of vessel capacity means the capesize market will be unable to repeat its 2009 spike, he added.