There is no doubt that the MPV sector has had a tough year in 2016. Unfortunately, market condi-tions are not expected to be significantly different in the current year as well, and it will be character-rised by weak rates, very low investment, consolidation among market players and a pressing need to cut costs for both shippers and carriers. For the medium term, the demand/supply situation looks a bit better, due to a combination of very low fleet expansion and positive trade growth expectations. Furthermore, the upcoming Ballast Water Management convention could give the demolition of older MPVs a boost. In the longer term, the MPV sector could benefit from global investments, resulting from the “One Belt One Road” projects and an increase of the oil price.
This is a short extract of our Market Insight Report.
The full report is available exclusively to our customers. Please contact your account manager or local DNV GL office.