Report Identifies Biggest Challenges for Shipping Industry
The shipping industry faces a challenging time going forward, as fears grow about the end of the commodity super-cycle due to a slowdown in global growth in general, and China’s in particular, says Debtwire Analytics.
The firm reports that substantial overcapacity in some sectors, especially dry bulk, combined with intense competition, has put pressure on freight rates and forced companies to reassess their operating models and cost structures.
With many companies highly leveraged as a result of taking on excessive debt over the previous years, their capacity to service debt in the face of adverse market conditions will come under increased scrutiny.
In its newly-published report on the industry, Debtwire highlights several other current trends likely to shape the years ahead.