Economic Indicators and Efforts for Sustainability slide image

Economic Indicators and Efforts for Sustainability

Outlook of Dry Bulk Market Conditions Dry Bulk Transport Demand and Supply Unit transport volume and shipping tonnage 6.0% -5.7%- 5.7% 5.0% -4:8% 4.1% 4.4% 4.0% 3.0% 2.2% 2.4% 2.0% 1.0% 0% 2013 1.6% 0.0% 2014 2015 2016 2.9% 2.9% 2.7% Future Market Outlook Baltic Dry Index (BDI) trends 12,000 Growth rate of cargo movement Growth rate of shipping tonnage Maximum value 11,793 (May 2008) 10,000 4.0% 3.9% 3.8% 3.6% 8,000 BDI 6,000 2.8% 2.2% 4,000 2,000 0.8% 0.5% 0.6% 2017 2018 0.4% 2019 2020 2021 2022 (Plan) (Plan) 2023 0 2000/1 Source: "Clarkson Research Shipping Review & Outlook" (Autumn 2022)" 1,760 (September 30, 2022) Minimum value 290 (February 2016) ти 2005/1 2010/1 2015/1 2020/1 Dry bulk transport demand and supply Shipping tonnage of dry bulk vessels for 2022 is expected to increase by 2.8% (up 261 thousand DWT) from 2021. However, the unit transport volume* is expected to increase by only 0.5% due to a decrease in shipment volume of grains, etc. resulting from the situation between Russia and Ukraine. Because it is expected that the unit transport volume will increase but the increase in shipping tonnage will be limited in 2023, concerns over a significant decline in transport demand are considered low at present. * Unit transport volume: Also called ton-mile. Indicates the tonnage and mileage of cargo transported and is an indicator to measure actual demand for ships. Copyright 2022 lyogin Holdings, Inc. All Rights Reserved. Future market out ●In 2022, although the market is depressed in comparison with 2021 which was a boom period, the market level, especially for small-sized vessels, remains historically favorable. This is mainly due to the fact that certain container cargo continues to be transported by bulk carriers. In 2023, supply and demand are expected to remain steady in the market, as shown on the left. However, the market could be entering into an adjustment phase triggered by a decline in transport volumes beyond the current forecast, mainly due to economic downturn in China, the largest exporting nation of dry cargo, and an intensifying global economic slowdown. -11-
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