CONTAINER freight rates will continue to sink back to pre-Covid level, but prospects for bulk - less likely for dry and more for liquid - are likely to improve in 2023, according to American credit agency, Fitch Ratings.
'We expect demand growth for oil tankers in 2023 to be similar to 2022 with this segment having more solid prospects than others,' said the Fitch press release.
But shipping measured in tonne-miles will increase due to rising oil exports shipped from Russia to China and India, which were previously supplied to Europe, it said.
'Dry bulk volumes are likely to be almost flat as key factors that are affecting demand will remain in place in 2023, despite some moderation in their intensity.
Demand for iron ore volumes will suffer from lower steel production in China due to continuing lockdowns and the real estate market's weakness.
'Coal transportation is affected by curtailed imports from Russia to Europe, and, despite longer alternative routes leading to higher tonne-miles, increased land-based coal imports to China offset this benefit. Demand for grains is affected by high prices and disruptions to Black Sea trade flows,' said Fitch.
'Order books for both dry bulk carriers and tankers remain at historic lows, close to seven per cent for bulk and four per cent for tankers of their vessel fleets.
SeaNews Turkey
'We expect demand growth for oil tankers in 2023 to be similar to 2022 with this segment having more solid prospects than others,' said the Fitch press release.
But shipping measured in tonne-miles will increase due to rising oil exports shipped from Russia to China and India, which were previously supplied to Europe, it said.
'Dry bulk volumes are likely to be almost flat as key factors that are affecting demand will remain in place in 2023, despite some moderation in their intensity.
Demand for iron ore volumes will suffer from lower steel production in China due to continuing lockdowns and the real estate market's weakness.
'Coal transportation is affected by curtailed imports from Russia to Europe, and, despite longer alternative routes leading to higher tonne-miles, increased land-based coal imports to China offset this benefit. Demand for grains is affected by high prices and disruptions to Black Sea trade flows,' said Fitch.
'Order books for both dry bulk carriers and tankers remain at historic lows, close to seven per cent for bulk and four per cent for tankers of their vessel fleets.
SeaNews Turkey