Essay: Capesize Vessels and Dry Bulk Market

Sample Essay

The capsize ships are cargo vessels which are used primarily in the bulk dry market,. These are very large in nature and size, and as a result it is not possible for them to pass through the Suez Canal or the Panama Canal. As a result these ships have to travel around South Africa, crossing the tip pf Cape Town. This is form where they get their names of Capsize. The types of ships under the capsize category take the form of VLCC, which are tankers as well as ULCC which are very large sized tankers. However in the bulk market the Cape size bulk carriers are employed. These are used mainly for transporting coal, iron ore, grains, and even sand. These ships are mostly used for very long distances which and for destination in the South East Asia.

However despite their inflexibility due to their size, these vessels have increased their demand. The main reason for this has been the economic development taking place in chin which requires extensive sources of coal and iron ore. These are transported by the capesize water vehicles. Additionally the current traffic at the Suez and Panama canals is highly congested and the capezine vessels are able to avoid this traffic and congestion by going through Cape Town. In 2006 “796 Capsize bulk carriers (> 80,000 dwt) had with 124.3 Mill dwt a share of 36.4 per cent of the total bulk carrier tonnage. Remarkable is that 160 vessels (13.3 per cent of the new entries) entering the fleet in the past five years were attributable to size classes above 150,000 dwt, which represent 34.1 per cent of the new built tonnage. The current bulk carrier fleets consist of 519 units with a capacity of 150,000 dwt and above.” (2006, ‘ISL Market Analysis’)

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