Cleveland Cascades LtdSailors SocietyViganTOC EventsThe Wolfson Centre for Bulk Solids Handling Technology Port of Stockton
  • Van Aalst
  • TOC Events
  • Port of South Louisiana
  • TBA Group
  • Sailors Society
  • Port of Stockton

Moody's: Stable outlook for shipping on back of dry bulk and container improvements

Moody's: Stable outlook for shipping on back of dry bulk and container improvements

(Posted on 21/06/18)

The outlook for the global shipping sector for the next 12 months remains stable on the back of expected supply-demand improvements in the dry bulk and container shipping segments and overall sector earnings growth of 4%-5%, says Moody's Investors Service in a report published this week. However, the outlook for the tanker segment is negative as supply remains high and charter rates low.

"Demand will slightly outstrip supply in the dry bulk segment, while supply and demand are likely to be pretty evenly matched in the container shipping segment. This combined with our expectation of 4%-5% organic earnings growth in the next 12 months underpin our stable outlook on the global shipping sector, despite continued oversupply in the tanker segment," says Maria Maslovsky, Vice President - Senior Analyst at Moody's.

"Recent US tariff announcements targeting steel and aluminium imports from certain countries and potential retaliatory action pose downside risks to the global shipping sector," adds Ms. Maslovsky.

In the dry bulk segment, over the last 12-months to April 2018, the size of the global dry-bulk fleet grew by just 1%, a positive for the segment. Moody's expects that demand will outstrip supply by about 1% in 2018. Charter rates have improved, but the rating agency expects them to remain volatile. In the container shipping segment, broad macroeconomic growth coupled with trade growth will support demand. However, high supply growth, especially in the first half of 2018, will likely prevent material further increases in freight rates.

Moody's report, "Shipping -- Global: Dry bulk, containers keep outlook stable amid moderate overall EBITDA growth," is available on www.moodys.com and to Moody's subscribers. The rating agency's report is an update to the markets and does not constitute a rating action.

Latest News

Fully digital LNG bunkering comes to Singapore

(Posted on 06/10/22)

Pavilion Energy and DNV have jointly developed a fit-for-purpose LNG bunker digital solution for employment... Read more


ShipMoney extends crew payment solutions to entire BSM fleet

(Posted on 06/10/22)

ShipMoney has expanded its agreement with Bernhard Schulte Shipmanagement (BSM) to include the ship... Read more


SAFEEN strategic agreement to own and operate five bulkers

(Posted on 01/10/22)

SAFEEN Feeders has signed a major agreement with Invictus Investment to launch a new international dry... Read more


World Maritime Day message must extend beyond shipping

(Posted on 01/10/22)

Never has the theme of this year’s World Maritime Day - ‘New technologies for greener shipping... Read more


ClassNK issues AiP for ammonia bunkering vessel

(Posted on 01/10/22)

ClassNK has issued an Approval in Principle (AiP) for an ammonia bunkering vessel (ABV) developed by... Read more


IOMSR strikes four ship deal with MX Bulk

(Posted on 28/09/22)

The Isle of Man Ship Registry (IOMSR) is expanding its fleet after securing a new deal with fellow Isle... Read more


DNV and SIT to promote decarbonization and digitalization

(Posted on 25/09/22)

DNV has signed a Memorandum of Understanding (MOU) with the Singapore Institute of Technology (SIT)... Read more


Fleet pledge to reduce environmental footprint of plastic bottles

(Posted on 25/09/22)

Fleet Management Limited, part of the Caravel Group and the second-largest ship management company in... Read more


Idwal appoints Haysom new CCO as expansion continues

(Posted on 15/09/22)

Idwal has announced that George Haysom has joined the business as chief commercial officer (CCO) to... Read more


Britannia hosts P&I academy for members in London

(Posted on 15/09/22)

Previously known as Members’ Training Week, the Britannia P&I Academy provides a week-long... Read more


TelestackPort of South LouisianaBühler GmbHCimbriaTBA GroupVan Aalst
  • Vigan
  • Bühler GmbH
  • Cimbria

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping