Earnings from shipping will suffer a double-digit decline next year, following a record year in 2021, but remain considerably higher than the pre-pandemic levels, according to Moody’s Investors Service.
“Business and financial conditions will remain solid, but they are unlikely to get better than they already are today,” the ratings agency said in a report, which revised the global shipping outlook to ‘stable’ from ‘positive’ on the back of peaking earnings this year.
The 13% drop in earnings before interest, taxes, depreciation, and amortisation comes amid a host of bearish factors, notably the lower gross domestic product growth in the group of 20 advanced and emerging market economies in 2022.
Moody’s estimated advanced economies, led by the US, would post an average GDP growth of 4.2% in 2022, from 4.9% this year, while a steeper fall to 2.4% is forecast in 2023.
Much slower growth is expected in emerging market countries, where average GDP is forecast to fall to 4.8% in 2022 from 7.3% this year and to further drop to 4.5% in 2023.
For further coverage of this story, LloydsLoadingList reports.
