Shipping industry stakes to pile next year
Stakeholders in the shipping industry are set to reap a bumper harvest next year on strong recovery of international trade, says global ratings agency Moodys.
There was reduced trade due to the Covid-19 containment measures that led to the closure of ports and shortage of containers globally. This led to an increase in cost of freight making imports more expensive.
“Shipping industry earnings will be considerably higher than pre-Covid-19 levels during the next 12 months,” Moody’s Investors Service said in a report published yesterday.
The outlook for the global shipping industry is changed to stable from positive for the next 12 to 18 months due to demand slightly outstripping supply, Moody’s Investors Service said in a report published today.
More shipping containers
This also means that there will be increased availability of shipping containers which should help reduce the cost of freight. Shipping firms in Kenya had said the container costs had gone up more than three times due to scarcity and as a result the cost of shipment surged.
Key players in the sector are mainly foreign companies such as Mediterranean Shipping Company, Seaforth, Diamond shipping and others.
Daniel Harlid, a Vice President – Senior Analyst at Moody’s and the author of the report said the outlook change is driven by tough comparisons with the very strong cash flows generated this year rather than a deteriorating business environment.
