The shipping industry is on course for consolidation as it moves off three-decade lows, the president of drybulk shipper Genco said on Wednesday.
"Last year we probably saw the low and it was a 30-year low in terms of freight rates and asset values and now we`re starting to see just the very beginning of a recovery," Wobensmith said.
"There were just too many ships that were built and delivered and we`ve seen a real slowdown in the number of ships that have been coming on to the water," he explained.
Anticipating a cyclical recovery to kick in at the end of this year, president John Wobensmith told CNBC`s Squawk Box that a pullback in shipping supply is the main driver of the benchmark Baltic Dry Index`s recovery of more than 7 percent this year.
The index, which assesses the price of moving the major raw materials by sea, hit its lowest level ever of $290 during 2016 before resuming a bumpy journey higher towards its current price of just about $1,000.
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