Moody`s wary of container shipping, and gloomy about dry and liquid bulk

MOODY`s Investors Service has said that container shipping supply and demand is in better balance than it has been with carriers reporting acceptable financial results in the first quarter.

But the situation remains fragile, says Moody`s analysts, according to Newark`s Journal of Commerce, because the rating agency expects containership earnings to weaken as more ships are delivered and overcapacity results.


Moody`s view of the dry bulk market was gloomy, saying it would likely be hit hard because its orders for new ship come to almost half of the current capacity.


Moody`s senior credit officer Marco Vetulli said that despite the increase in oil demand in the past year and a half, the tanker world faces difficulties because a sustained widespread economic recovery in 2012 and 2013 appears unlikely.


Moody`s said the supply chain disruptions caused by the earthquake and tsunami in Japan in March will be short-lived and volume will recover to pre-earthquake levels in the fourth quarter.