It posted operating earnings of US$687 million on revenue of US$1.13 billion in 2019, and, according to Atlas Corp.’s first-quarter 2020 financial results, the company remains bullish on Seaspan’s prospects for 2020, despite grim global economic outlooks. Heaney noted that a scenario in which the pandemic lingers deep into 2020 and is followed by another outbreak in 2021 would result in a 12% drop in container traffic this year followed by another 6% decline in 2021. All rights reserved. By becoming a trade member you can link your company to the pursuit of excellence and quality in the transport and logistics sector. Continued restrictions on the movement of people, as well as some goods, also bode ill for the global shipping industry’s prospects. However, the outlook for the tanker segment is stable helped by a temporary dislocation in the oil market with high demand for floating storage pushing up tanker rates. Moody’s said “we recently revised down our 2020 baseline growth forecasts for all G-20 economies because we expect the coronavirus to hurt economic growth in many countries through first half of 2020 and to hamper trade. The revised supply and demand forecasts reflect our expectations for the conditions in the specific industry sectors taking into account historical industry trends as well as the likely effect of the coronavirus,” the rating agency said. 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. If those crew members or their unions do not agree to contract extensions, ships will be under-manned and considered unseaworthy. Cutting costs while reducing carbon emissions is top of every shipping operator’s agenda. There is a downside risk that the EBITDA of shipping companies globally could decline by 25-30%, similar to levels last seen in 2016 when Hanjin Shipping Co. Ltd. went bankrupt in one of the largest recent failures in the sector. “IMO 2020 was already going to make this a year of huge disruption for the entire maritime industry,” said Mr Marc Iampieri, the Managing Director for Transportation and Infrastructure at AlixPartners. Only three, according to Damas, were relatively secure. Therefore we should not [discount] the possibility that one of the weaker carriers could reach Hanjin-type levels and disappear.”. And to do that, machine learning is key. With the shipping industry becoming increasingly competitive, and with regulations forcing operators to increase their environmental efforts, it is increasingly obvious that traditional approaches are no longer good enough.

Moody’s expects the global economy to contract by around 11.9 percent this year due to coronavirus-induced drop in consumer demand and investments as well as supply chain disruptions due to the lockdowns. On the positive side, the sector continues to benefit from scrapping related to IMO 2020,” the rating agency said. “Some container liners have indicated that the activity in China is picking up, which is a positive, but we are also mindful of the potential for reduced commercial activity in Europe and North America as these regions battle the coronavirus. Both spot and charter rates have risen significantly in the past week and are likely to remain at elevated levels through April following the announcement of discounts on oil sales by Saudi Arabia. By utilizing the power of data and machine learning, these twin goals can be achieved. “Throw in the coronavirus, the recent deterioration of some key financial measures and whatever other unforeseen disruptions lie ahead, and it is clear that preparing for the worst may be the best way to avoid the worst,” he emphasised. As demonstrated by the report, there is no standard BAF formula in use across the board, nor is there any widely recognised mechanism to account for the effects of the various sulphur reduction methods on the type of fuel used and the amount consumed. 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). The outlook for the global shipping industry has changed to ‘negative’ from ‘stable’ in the wake of the coronavirus outbreak, Moody’s Investors Service said in a new report. 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. By downloading this whitepaper, you will discover: The numerous benefits of machine learning, Operating costs are set to rise by at least 3% post-2020, so reducing inefficiencies is key, The 2020 sulphur cap has been designed to cut shipping’s 15% contribution to global sulphur emissions, The annual fuel bill for the shipping sector is set to soar upwards by up to $60 billion post-2020, Daniel Jacobsen, CTO and co-founder at GreenSteam.

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. 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. One of the key factors impacting recovery is the oversupply of vessels exceeding the demand in key shipping segments, which is likely to extend into 2021. COVID-19 hospitalizations rise to highest since early April, Residential rental freeze extended into 2021, Industrial lease rates on upward trajectory, experts say, Pandemic mental health crisis calls up, suicides down, UPDATE: RCMP must respond to spying allegations: lawsuit. Consumer demand is expected to recover in the second half of the year. “Our outlook for the global shipping industry had been stable since May 2017.”. and elsewhere around the world from taking on water in the COVID-19 storm. Recapping 2019’s top global shipping disruptors.

The aim of the mandate, one of the most substantial and far-reaching … London, March 19, 2020 -- Earnings of rated shipping companies will likely decline by around 6%-10% in 2020 ; Shipping demand shrinking on economic disruption, falling manufacturing output ; The outlook for the global shipping industry has changed to negative from stable in the wake of the coronavirus outbreak, Moody's Investors Service said today in a new report. GREENSTEAM’S GLOBAL SHIPPING OUTLOOK FOR 2020 & BEYOND Cutting costs while reducing carbon emissions is top of every shipping operator’s agenda. “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. In conclusion, the Moody’s report said “we 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 EBITDA growth appears likely to be between -5% and +10%.”, Limassol and Paphos hotels, bars and restaurants have sounded the, The government announced Thursday it would provide another €30 mln, Experts expect an increase in the number of COVID-19 hospital, Apart from lockdowns in Limassol and Paphos, the government has.

There has never been a better time to discover the power of machine learning. “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.

Fleet growth for dry-bulk shipping companies picked up in 2019, but Moody’s expects it to reduce in 2020 through postponements, scrapping and idling. So say analysts from U.K.-based shipping consultancy Drewry. According to Alix Partners, the frustration with the opacity around BAF charges will likely cause some of the shippers, freight forwarders and NVOCCs to propose their own formulas and press for adoption, thus driving the movement towards transparency and standardisation. Global Shipping Market Review - May 2020.

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. It gives rise to the suspicion that some carriers are using the BAF as a revenue-raising tool as well as a cost-recovery and risk-sharing mechanism,” the report highlighted, adding that “the uncertainty can lead to tense relationships that take a toll on both sides and add to the headwinds the container shipping industry faces.”. Fill in the form 2020 economic outlook grim for global container cargo shipping sector Protracted pandemic downturn could sink weaker carriers: U.K. analysts In addition, port openings in China will also allow for transportation of grains, another large dry bulk commodity. Key developments in the global shipping market & outlook for the key shipping market segments. 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.