“The earnings of rated shipping companies will likely decline by around 6-10% in 2020 compared with EBITDA growth of almost 40% in 2019,” said Maria Maslovsky, a Vice President and senior analyst at Moody’s. ET BIFA has launched a free App for the freight industry available on both iPhone and Android allowing you to get the latest information direct to your phone. Now that the fireworks are over and New Year’s resolutions are set, it’s time to prepare for global shipping in 2020.

One thing’s for sure, freight forwarding never has a dull moment. An Ocean Network Express (ONE) shipping alliance container ship being unloaded at GCT Deltaport at Roberts Bank. He also noted that several other issues are threatening to seriously disrupt container shipping. “Our outlook for the global shipping industry had been stable since May 2017.”. The rating agency said it would consider revising the outlook to stable if both the oversupply of vessels declines materially such that shipping supply growth does not exceed demand growth by more than 2% and year-over-year aggregate EBITDA growth appears likely to be between -5% and +10%.

At the time, Seaspan had three container ships chartered to Hanjin on the hook for approximately US$18.6 million in past-due accounts receivable from the South Korean company. “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. What is more, there is a shift toward more regional supply chains and domestic production of certain types of goods which would lead to a reconfiguration of a number of shipping routes, according to Moody’s, although the ultimate effect on tonne-miles, a key revenue driver, is uncertain at this point. The bunker adjustment factor (BAF) has become even more complex with the introduction of IMO 2020, with each line having its own variation on a basic formula covering a range of areas including fuel price, ship size and trade. The outlook for the dry bulk and container shipping segments remains negative with supply likely to exceed demand significantly. Damas, Drewry’s managing director in charge of logistics practice, noted that Drewry’s Z scores were based on financial data from the end of 2019. All rights reserved. Positively, the BDI has been rising in recent weeks. Cutting costs while reducing carbon emissions is top of every shipping operator’s agenda. 2020 marks the beginning of a new era for the container shipping industry. By becoming a trade member you can link your company to the pursuit of excellence and quality in the transport and logistics sector. Damas added that the 8% projected drop in global container volume represents a revenue reduction of approximately US$18 billion for the container carrier sector. Positively for container shipping companies, the recent drop in oil prices will help offset fuel costs, especially in light of the IMO 2020 low sulphur fuel regulations that came into effect in January. So say analysts from U.K.-based shipping consultancy Drewry. In order for the outlook to be revised to positive, year-over-year aggregate EBITDA growth would have to exceed 10%, and the vessel oversupply would have to be slashed. Still, as coronavirus takes its toll on countries globally, other large importers of dry bulk goods are either already affected, such as Japan, or are likely to become affected in the coming months (such as India). If those crew members or their unions do not agree to contract extensions, ships will be under-manned and considered unseaworthy. “Still, the longer-term picture remains uncertain for the tanker sector and, given the global slowdown in growth, we do not expect a large increase in demand for tankers in the medium term. Global Shipping Market Review - May 2020.

Key developments in the global shipping market & outlook for the key shipping market segments. The negative pressure on tanker shipping companies from reduced demand for oil and oil products because of the coronavirus outbreak has been unexpectedly mitigated by the recent sharp drop in oil prices.

China is the largest importer of dry bulk commodities and the sharp reduction of Chinese demand sent the Baltic Dry Index (BDI), a key benchmark for dry bulk shipping, toward historical lows. The last time a global container shipping company went bankrupt was in 2016, when South Korea’s Hanjin Shipping Co. sank in receivership. The company also noted that all 123 ships in Seaspan’s fleet have secured long-term charters.

Global Shipping Containers Market Research report 2020 provides detailed analysis of industry status and outlook of major regions based on of key players, countries, product types, and end industries. Press Release Global Paper Shipping Sacks Market 2020: Industry Size, Outlook, Share, Demand, Manufacturers and 2024 Forecast Research’s Published: Nov. 2, 2020 at 5:06 a.m. Heaney, Drewry’s senior manager of container research, said second-quarter 2020 container port throughput is projected to drop an estimated 16% compared with the same time last year, and the company’s revised baseline overall outlook for 2020 has global container cargo handling down 8%. That will force more cancelled sailings and further disrupt global trade and supply chains.