The global shipping market will recover in the next 3 to 5 years, led by the container industry, which has already started to return to profit.

Mr Wei Jiafu head of China Ocean Shipping Company the world’s largest dry bulk firm said that the shipping industry was seen to be returning to pre-crisis levels with the help of soaring consumer consumption in China.

Mr Wei forecast that the Baltic Dry Index would average 3,500 points in 2011, up from close of 2,482 points on November 8.

A flood of new dry bulk and oil tanker vessels may weigh on the freight market in 2011, slowing the industry’s recovery from the global financial crisis two years ago.

He urged the freight industry to avoid ‘irrational fleet expansion’ that could threaten to burden the market for years.

The global fleet of dry bulk carriers is expected to outpace economic demand in 2011, a result of the industry’s buying-spree two years ago before the financial crisis hit sea trade.

Outstanding bulk cargo ship orders represent more than half of the existing capacity, according to Clarkson Research.

Dry bulk freight supplies were expected to increase to 616 million DWT next year, a 15% rise over this year’s 537 million DWT. That would surpass a 5 per cent rise in expected demand growth in seaborne trade to 413 million DWT from 395 million DWT.

(Sourced from Exim News Service)