Fitch Ratings has downgraded the rating outlook for the shipping industry due to problems in the container shipping market
The Fitch rating agency has announced a revision of the rating forecast for the shipping industry against the backdrop of deteriorating conditions on the container transportation market.
This is written by TTS with reference to The Maritime Executive.
Fitch writes that a sharp decline in freight rates as supply chains return to normal will have a significant impact on operators' earnings next year.
The main factor, according to the agency's analysts, is a reduction in consumer demand and production amid a stronger than previously expected recession and ongoing quarantines in China.
Fitch assesses the prospects of the tanker and bulk market as relatively stable.
The agency predicts that demand for oil tanker transportation will continue to grow next year, and its dynamics will remain approximately at the level of 2022.
Volumes of bulk transportation next year will remain at the level of the current year. A reduction in steel production in China amid ongoing quarantine restrictions and real estate market woes will weigh on demand for rail transportation.
The volume of coal transportation from the Russian Federation to Europe will be reduced, and the increase in supplies to China will be largely ensured by land transport.
The demand for grain will be under the pressure of high prices and interruptions in exports from the Black Sea region.
The order book for new tonnage, both in the bulk and tanker segments, remains at record low levels: 7% and 4% of the existing fleet, respectively.