Scrapping the only answer for dry bulk shipping

Shipowners were left in little doubt about what they have to do to ride out the market of over supply: scrap, scrap, scrap, refrain from placing new orders, slow steam and, as a last resort, lay-up.

"Over supply is the real issue and discipline is the key. Owners need to help themselves. We know what we have to do," John Michael Radziwill, ceo of C Transport Maritime said.

"We are faced with mass lay ups or scrapping of aged ships. Layups is not the answer, it's a short term solution, the answer is scrapping," said Radziwill, adding: "Despite the current low bunker prices we still should slow steam."

Radziwill was not alone in his call for scrapping. Seb Landerretche, of Louis Dreyfus said "we must scrap" noting more than 1,000 bulk carriers are over 20-year-sold. He said even at today's low rates the economics of laying up make no sense. Giovanni Ravano, of Bunge Group, hoped estimates that a record of some 40m dwt would be scrapped, would fall short of the mark.

Braemar ACM Shipbroking director, Peter Malpas said talking about the dry bulk market "was little like attending the last supper". He said that in 2012 the problem was demand and oversupply, whereas today it's more a case of oversupply.