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Friday, 18 March 16
OUTLOOK ON GLOBAL SHIPPING SECTOR TURNS NEGATIVE AS SUPPLY-DEMAND GAP WIDENS AND EBITDA DECLINES - MOODY'S
 Moody’s Investors Service (Moody’s) has changed its outlook on the global shipping sector to negative as it expects supply growth to outpace demand growth in 2016 by more than 2%, suppressing freight rates, particularly in the dry bulk and containership segments. The outlook for the tanker segment remains stable as low crude oil prices will continue to boost demand for tankers.
“Even though the tanker segment continues to perform strongly, we expect the supply-demand gap for the industry overall to exceed 2% in 2016, and possibly into 2017, as large new vessel deliveries coincide with subdued demand for dry bulk and container ships,” says Marie Fischer-Sabatie, a Moody’s Senior Vice President and author of the report. China’s slowdown is weighing on demand for commodities, such as coal and iron ore, which in turn affects dry bulk seaborne transportation demand.
On the back of weaker freight rates in the dry bulk and containership segments, Moody’s now forecasts a low single-digit percentage decline in aggregate EBITDA for the rated shipping companies in 2016, versus growth in the low single-digits in its previous forecast late last year.
While fuel prices, which make up a large cost item for container shipping companies, have continued to fall over the past six months, the benefits to the container shipping segment will fade somewhat in 2016 because they have already passed lower fuel costs on to their customers via reduced freight rates, limiting the upside.
Moody’s report, titled “Outlook Update: Shipping — Global: Weakness in Dry Bulk, Container Segments Drives Outlook Change to Negative”, is available on www.moodys.com.
Source: Moody’s | Hellenic Shipping News
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Monday, 25 April 16
BALTIC DRY INDEX ENDS WEEK ON A POSITIVE NOTE
COALspot.com: The Baltic Exchange, tracking rates for ships carrying dry bulk commodities continued to rose this week.
The freight market was ...
Friday, 22 April 16
U.S WEEKLY DOMESTIC COAL OUTPUT UP 8.2 PER CENT - EIA
COALspot.com – U.S the world’s second largest coal producer has produced approximately totaled an estimated 11.1 million short tons (mm ...
Thursday, 21 April 16
PANAMAX: A VERY HEALTHY NORTH ATLANTIC FOR BOTH ROUNDS AND FRONTHAUL
Capesize
Correcting after last week's quadrupling.
This year's highest daily average of USD 8000 came on the back of substantial pro ...
Wednesday, 20 April 16
2017 IS EXPECTED TO BE A MUCH BETTER YEAR FOR THE SHIPPING INDUSTRY - INTERMODAL
Some months ago we noted that all projections anticipated 2016 to be a better year from a macroeconomic point of view when compared to 2015. As we ...
Tuesday, 19 April 16
STARS STILL SHINING? KEY IMPORTERS THROUGH THE TELESCOPE - CLARKSONS
As the pace of growth in Chinese seaborne imports has slowed, and prospects for a return to stronger rates of expansion appear to have diminished, ...
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