One of the biggest drivers for the shipping industry is growing. According to the 2014 Global Dry Bulk Shipping Marketing, steel is causing the dry bulk shipping sector to experience strong growth. This new report focuses on the increased demand for steel, particularly iron ore and coal, which are key components in the steel industry.
The increase in steel shipping is a positive sign for China, which is the major importer and exporter of dry bulk shipping. Furthermore, the fact that there is an increase in demand for steel is a positive sign for global economy in general.
Companies do not require steel unless they are constructing larger buildings or transportation vehicles. And, given the fact that the world population is growing at an exponential rate, the increased need for steel should remain strong indefinitely. With the global population increasing this means a continual need for housing and support structures.
Not even a Third World War would slow down the growth of the human population, assuming the population losses to be along the same levels as the first two wars.- National Academy of Sciences in Adelaid, Australia
The increase in steel production will mean an upgrade in the shipping fleet. China has already subsidized the four largest shipping companies in the country to help them update their fleet to the newer, more efficient ships.
The current four types of steel transport ships are:
Capesize, Panamax, Handymax, and Handysize. New orders for these types of vessels are intended to replace older vessels in the fleet, and improve the shipping of the metals.
For the moment, analysts are interested in seeing how the future of steel will continue to affect the world’s shipping industry, and if it can help sustain an industry hit by a lot of obstacles over the last few years.