Panama Canal dry bulk transits plummet over 100%

Inefficiencies in the trading fleet have been a source of significant support to the dry bulk market this year, propelling gains in asset values.

Dry bulk shipping has grown significantly from 2013-2023, driven by advancements in technology, increased raw material demand, and changing trade patterns.

BIMCO: Between January and August 2024, the number of recycled ships dropped 42% y/y, the second lowest level in 16 years.

Between January and August 2024, Chinese seaborne dry bulk imports rose 6% y/y, driven by inventory build-up, despite domestic concerns.

Shipowners have found stable dry bulk markets with narrow spot rate ranges and low scrapping, but recent trends show Capesize and Panamax rates falling.

The Panama Canal’s operational issues led some bulk shippers to choose alternative routes, with future decisions based on capacity and transit assurances.