Why do shipping markets take so long time to recover?

Freight markets movement is not all simply about supply and demand but also psychology plays a big role in freight markets. Optimistic group’s impact became evident in last weeks when a small upturn in freight rates triggered a slowdown in ship scrapping sales. Shipowners now believe that the start of an upturn had arrived in dry bulk freight rates. Some owners are optimistic about future dry bulk freight rates and demolition has slowed last week. FFA (Freight Futures Agreement) forward curves show that dry bulk markets will not be strengthen years or will be limp recovery. Losses in dry bulk shipping will grow till 2019.