Moody's Investors Service said the outlook for the global freight industry has changed to (stable) from (positive) over the next 12 to 18 months due to demand exceeding Width a little.
The agency said in a report, which was received by (Namazone) website, today, Monday, that the change in its forecast for the global shipping industry was driven by difficult comparisons with the very strong cash flows that It was generated this year in place of the deteriorating business environment. Indeed, business and financial conditions will remain strong, but are unlikely to improve from today.
Daniel Harled, vice president and chief analyst at Moody's and author of the report, said container and bulk carrier profits had reached record levels; However, we expect earnings to decline from their 2021 peak but remain elevated. However, limited deliveries of new ships next year will help keep freight rates at elevated levels.
He noted that the demand for goods is still high and will remain strong in 2022. Growth rates are likely to have peaked and will start to slow next year. Standard high profitability and cash flow generation were used to pay off debt.
Shipping companies' capital spending will continue to increase. Therefore, Moody's expects that orders for newer, more energy-efficient vessels will continue to emerge during 2022, as shipping companies prepare for stricter environmental regulations that will be implemented gradually from 2023.
