PwC report stresses risks of ‘distorted' shipping market. Capesize fleet to soar while demand for seaborne iron ore largely stagnates 40% increase on current Capesize fleet expected over next three years with 450 on order Bucharest, 30 November 2011. The size of the Capesize fleet is forecast to rocket over the next three years at the same time as demand growth for seaborne iron ore is set to stagnate according to PwC's ‘Dry Bulk Shipping - Capes of no Hope?' report. There are currently 1,200 Capesize vessels worldwide at a value of $45billion but it is estimated that a further 450 more are on order over the next three years which will flood the market. While some of these orders may be delayed or cancelled, the global order book implies there will be rapid growth in seaborne transport of iron ore and coal, the main commodities carried by Capesizes. Analysts behind the report say ship owners are expecting demand for iron ore to follow the hikes of the last decade. With this in mind, a large order book of Capesize ships to transport the cargo has built up. Iron ore transportation has grown dramatically in the last decade, with the explosive growth of infrastructure investment in China being the key driver of this growth. However, research in the report reveals future demand growth for iron ore will probably only average low single digits over the next five years - nowhere near the demand expected. The report states, in the absence of rapid demand growth from China, seaborne transportation of iron ore will be subdued since other major markets, such as Japan and Western Europe are relatively stagnant. India is also unlikely to make a major contribution to growth, given large domestic reserves of iron ore and a limited number of Capesize capable ports. "As in other sectors of the shipping industry, dry bulk market participants are assuming that the next decade will