Kuala Lumpur: Malaysian Bulk Carriers (MBC) is warning that the flood of newbuildings will drag down the dry bulk shipping market. The Kuok Group shipowner noted in its half year financial results that the Baltic Dry Index had hit a low of 1,964 points on August 3. It said slower iron ore activity, weaker coal imports into China, an easing of port congestion and an oversupply of vessels had all weighed heavily on the market in recent weeks. With 320 new bulkers totaling 32m dwt added to the global fleet in the first of the year MBC noted deliveries were expected to increase in the second half of the year. The company said fleet growth remained at levels that outpaced demand and this would leave the dry bulk market facing the risk of overtonnaging by year end. [25/08/10]
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