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Bulk shipping sees bullish prospects on demand growth: U-Ming

Bulk shipping sees bullish prospects on demand growth: U-Ming
The expected improvement in the global economic climate is set to drive demand growth of bulk raw materials, boosting activities in the bulk shipping market, according to U-Ming Marine Transport Corporation.

Taiwan’s U-Ming, which recently took delivery of a new 85,066-dwt post-panamax bulk carrier at Japan’s Oshima Shipbuilding, has been expanding its fleet with more energy efficient vessels to position itself for projected demand growth for bulk carriers.

The company cited analysts’ projections that India’s present 76% power generation is still relying on thermoelectricity and the country’s coal import will reach 200m tonnes between 2019 and 2020, before reaching 350m tonnes within five years thereafter.

The ongoing infrastructure construction and development in emerging countries such as India and China is expected to continue, compounded by funding support from the China-backed Asian Infrastructure Investment Bank (AIIB) and BRICS Development Bank and the Silk Road Fund.

Steel analysts have also predicted a huge impact on the forthcoming steel demand and in turn driving the raw material shipping volume, U-Ming observed.

In line with its fleet renewal and expansion program, U-Ming has been seizing the opportunity since 2010 to order new fuel-efficient and environmental-friendly vessels which includes four 85,066 dwt post-panamaxes and four 62,000 dwt ultramaxes from Oshima Shipbuilding.

The latest delivery of Cemtex Fortunecemtex fortune on 6 August is the fourth of the 85,066 dwt post-panamax series, after Cemtex Hunter, Cemtex Leader and Cemtex Honor.

Since 2012, U-Ming has de-commissioned eight older vessels and added 17 new ones to achieve a more competitive fleet portfolio.

Presently there are seven new vessels under constuction, including three capesizes and four ultramaxes with deliveries until 2017.