Moody's predicts 18 more months of dark days for shipping

The development in dry bulk and container has now caused rating agency Moody's to change the outlook for shipping from stable to negative. A strong tanker market does not change the continued overcapacity for the whole industry, where new ships are bringing uncertainty.

Rating agency Moody's changes its outlook on the shipping industry from stable to negative. The reason is the weak market for both dry bulk and container, which is now causing the rating agency to downgrade the forecast for shipping for the next year to year and a half, Moody's writes. The negative rating basically means that Moody's expects a worsening of the fundamental market conditions in shipping.

"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, driven by ongoing large amounts of new vessel deliveries at a time of subdued demand for dry bulk and container ships," notes Moody's, where the most recent analysis was released in November 2015.

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from ShippingWatch

Further reading

Related articles

Latest news

See all jobs