Dry bulk business

Dry bulk business are subject to different changes because of some economic aspects include the issue of inflation. In addition, there also exist some aspects in which dry bulk freight rates are not continuous in a long period of time. It can be noticed that in the global market, the behaviour of the dry bulk freight shows it’s weakest during the summer season and will eventually increase during the autumn season. It has been observed that the dry bulk freight experiences great fluctuations over the summer and shows strong improvement during September and October. Accordingly, dry bulk shipping business can be considered as a highly cyclical industry. This indicates that there are some period that the shipping costs is extremely high and there are some instances in which their rates was extremely low. This trending largely depends on the season through which dry bulk goods are needed or demanded.
In a study conducted by Stopford (1997), it has been mentioned that the costs in such type of shipping business can be considered as a driving forces in its business operations. Herein, Stopford (1997) noted that there are three types of costs that must be considered and this include the operating costs, voyage costs and the capital costs. In these costs, the voyage cost is considered as the largest costs for shipping business, voyage costs actually comprises 60% of the total shipping business costs. On one hand operating costs only comprises 25%-40% of the entire business and the capital costs are around 30%-40% of the total costs. Aside from the costs aspects, other aspects are also considered include the supply and demand of the dry bulk goods