If the number of bulk freight vessels predicted actually hit the water on time next year, freight buyers could see a decline in ocean freight rates sometime next year.
"Rising (bulk ocean freight) rates may continue throughout 2008, but the massive order book will probably facilitate a fall in rates sometime in 2009 or early 2010, and we do not believe cancellations and delays could save the dry bulk market from 2010," says Fearnley Fonds analyst Rikard Vabo.
For example, Mitsui O.S.K. Lines in Tokyo, said in May it planned to build 53 new iron ore carriers to meet rising demand.
Source: Purchasing, http://www.purchasing.com