Article: United States : Bulk-Shipping Lines Must Cancel 50% of New Orders, Platou Says.

Bulk-shipping lines need to cancel half of the new vessels they have on order to ease a capacity glut and revive freight rates, according to shipbroker R.S. Platou ASA.

If half the orderbook is never built, then we can keep the market fairly balanced, Bjorn Bodding, a senior analyst at Platou, said today at a conference in Singapore. Even axing a third wouldn t be enough to help rates recover before 2012, he added.

Bulk-shipping rates have tumbled 78 percent from a record last year as growth in the global fleet outpaces China s demand for iron ore and coal shipments. The glut could worsen as commodity companies, such as Noble Group Ltd., build up their ...

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