HEAVY CARGO MARKET FORECAST.
Providing a Consultation for the future market on the Heavy cargo sector required a detail study into the Oil price and surrounding factors.
These key factors were the delivery of raw materils in the first instance for manufuacture of large machinery. Also, the demand and need for the end user of such equipment in the foreseeable future.
MBM Consultancy performed the study due to internal available finacial knowledge of these sectors. Also the internal maritime shipping forecasts and operational costs to transport all the materials and goods to develop and mantain the heavy project sector.
It was forseen in 2016 that a downturn in the Heavy Cargo Market sector was inevitable from 2016-2018 directly based on the oil price which removed the Oil sector from the Offshore exploration market.
A new study is set to be instigated this year (mid 2019) to determine the forecast for the coming years of 2020-2022.
With a preliminary forecast set for a growth of 5%.
This growth may be subject to further growth dependent upon financial support from Chinese investment into 3rd world coutries (Africa specific). With a small potential increaseto the overall forecast growth subject to the EU. UK, and US markets, (approx up .3%). There may also be a increase in growth due to the upcoming recycle and installation program of heavy machinery for the maritime fleet and new building programs. Required to meet environmental rules and regulations, and thus mass scrapping of old and “not so old” cost inefficient vessels at an early age.
However, growth is very subject to the ongoing tensions in the Global World Trade/Tarriffs Agreements that are being disrupted/driven by the US.
The new study from MBM Consultancy will be availble in the coming months. (posted 11-04-19).