Liner companies' earnings devoured by oil price in 2018

The rising oil price hurts the major liner companies, whose best case scenario is break-even in 2018, projects Drewry in a large downgrade of the sector overall.

Photo: /ritzau/Marius Nyheim

The increasing oil price now makes analyst firm Drewry downgrade its forecast for liner companies's earnings in the full year 2018, which in the best case scenario is now expected to reach break-even for the biggest players in the sector.

The previous forecast was for a combined operating profit of around USD 5 billion, but the unexpectedly significant increase in the price of fuel oil has dramatically changed the liner shipping companies' cos base, writes Drewry in a comment Monday.

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