World News
Moody's Shipping Outlook Best Since 2011
Moody's outlook for the global shipping industry moved out of negative territory for the first time since June 2011 with an upgrade by the rating bureau Wednesday.
Moody's found that savings, through reduced bunker prices, slower steaming, and efficiency efforts, improved the industry's condition, despite continuing difficult conditions in the market.
"The revision reflects our expectation that the global industry's aggregate profits will rise by mid-single digits in percentage terms year-over-year in 2014, in line with our -5 percent to 10 percent growth range for a stable outlook," said Mariko Semetko, assistant vice president and analyst.
Moody's, which now classifies shipping as "stable", warned that the industry is still vulnerable to potential widening in the gap between supply and demand, but it said carriers have improved their position by postponing or cancelling newbuilding contracts, idling ships, and scrapping old, inefficient vessels.
In recent weeks, some analysts have been backing away from earlier optimism about a gradual rebound in the shipping industry in 2014.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 514.00 | 3.00 | 598.50 | 8.00 |
| Rotterdam | 459.00 | 8.00 | 606.50 | 9.50 |
| Houston | 460.00 | 9.50 | 609.50 | 7.00 |
| Fujairah | 508.50 | 10.50 | 717.50 | 7.50 |
| Global 20 Ports Average | 531.00 | 5.00 | 707.00 | 6.50 |
| Global 4 Ports Average | 485.50 | 8.00 | 633.00 | 8.00 |
| Global Average Bunker Price | 569.50 | 5.00 | 753.50 | 6.00 |
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