Moody`s says carrier credit good - rates, volumes to rise in 2011

Time:2011-05-20 Browse:42 Author:RISINGSUN

MOODY`s rating agency has declared that container carrier credit has improved greatly since the 2009 global downturn, and that rates will recover and the second and third quarters will show improvement, reported London`s Containerisation International.

"The negative effects of the 2009 recession continue to diminish and while we don`t expect to see 12 per cent growth in volumes or credit metrics as strong as last year, a still positive growth momentum will aid the recovery of all of the main operators," said Moody`s senior credit officer Marco Vetulli.


"We are seeing a number of carriers in the Asia-Europe trade raising their rates and volumes remain positive," he said. "The feedback from carriers that we have spoken to is positive and they all say they have learnt lessons from the recession of 2009. That sends out a good sign for this year."


Mr Vetulli also said that container volumes would likely rise by five to six per cent in 2011 and that "supply would broadly be in line with demand. Carriers will report decent results this year," said the Milan-based analyst.


But the market remains uncertain, he said. "If the economic recoveries in the developed world countries falter, it could pose a challenge for the industry. Against this backdrop, a disciplined investment approach by container shipping companies and a focus on improving efficiency will be key to enhancing operating performance," he said.