On Wednesday Moody's upgraded the rating bureau's outlook for the global shipping industry from negative to stable for the first time since June 2011.
Moody's: Global shipping faces three challenges
"The revision reflects our expectation that the global industry's aggregate profits will rise by mid-single digits in percentage terms year-over-year in 2014, in line with our -5 percent to 10 percent growth range for a stable outlook," says Mariko Semetko, Assistant Vice President and Analyst, in relation to the report "Change to Stable Outlook for Shipping Sector Reflects EBITDA Growth".
In particular, Moody's notes that cost reductions - including the effects of reduced bunker prices, as well as the use of slower steaming and efficiency savings - drove the growth in EBITDA. At the same time, market conditions remain tepid, but not deteriorating, while freight rates for the dry-bulk market is showing some improvement. However, the container segment remains under pressure.
According to the report, carriers are also saving money by postponing or canceling newbuilding contracts and by scrapping the oldest and least efficient ships, and by idling other ships.
However, Moody's warns that the situation could change to negative again if the gap between supply and demand grows more than expected.
The upgrade from Moody's comes at a time when the anticipated and gradual recovery in shipping is starting to fade among a steady stream of bad news.
Investors call off 2014 shipping rebound
Norden: We're hit by ten-year low on the Atlantic
Early 2014 does not look like a shipping rebound
More from ShippingWatch
United Heavy Lift sees full ships on booming oil, gas and wind
A shortage of modern MPP ships and an unexpected comeback for oil and gas means Hamburg-based United Heavy Lift is busy, Partner Andreas Rolner tells ShippingWatch. ”A year ago, we thought oil and gas was dead.”
Australian minister criticizes Svitzer in feud over labor agreements
Australia’s labor minister criticizes Maersk-owned Svitzer in relation to a labor agreement strife. The conflict resulted in work stoppage on Friday in a number of Australian ports.
Shipping in a safe position despite shaky world economy
Container carriers are facing a couple of difficult years, but otherwise the shipping industry looks set to do well despite dark clouds over the world economy, according to shipping analyst. ”Right now, most companies are making a lot of money.”
Waning European demand could significantly impact container market
Demand for container freight continues to decline in Europe, which could lead to significant overcapacity once current bottleneck issues are resolved, writes Sea-Intelligence.
UK’s biggest container port to be hit by eight days of strikes
Almost 2,000 dock workers at Britain’s biggest container ship port plan to strike for eight days this month after failing to reach a pay deal, threatening to sever one of the UK’s most important trade routes.
Assistant Fleet Superintendent 
Adm. Director of Svendborg District Heating 
Legal secretary for Shipping / Offshore / Transportation 
Operations Manager for B-Gas A/S in Copenhagen 
Senior Associate – Group Strategy Office 
A lawyer (chief consultant) is wanted for People & Culture 
Logistics coordinator with responsibility for our shipping activities 
Head of Airfreight 
Operations Controller – Weco Tankers