Moody's mood worsening
It comes as no surprise that the rating agency Moody's sticks to its negative outlook for the global shipping sector for the coming 12 to 18 months. The outlook has been negative since March 2020.
Yet, Moody's investors' service now draws an even gloomier picture in a new report. The key drivers of the outlook are the combination of expectations that the global economy will shrink in 2020 and the road to recovery will be long and bumpy.
"We now expect the aggregate ebitda of rated shipping companies to fall by around 16%-18% in 2020, nearly doubling from our previous projection of a drop of around 6%-10%," said Maria Maslovsky, vice president - senior analyst. The outlook for the dry bulk and container shipping segments remains negative with supply likely to exceed demand significantly. (mw)