Shipping industry likely to sustain performance in FY24, may see moderation in margins: Report
shipping industry is projected to sustain its performance in the current fiscal, albeit with some moderation in operating margins, CareEdge Ratings said in its report on Wednesday. The outlook for the Indian shipping industry is stable, primarily because the mid-size tanker (both crude and product) and dry Bulk segments account for the majority of vessel capacities, it said.
These segments are anticipated to fare well in the overall shipping industry, it said. The Indian shipping fleet is primarily dominated by crude and product tankers, accounting for the majority of the overall capacity at 57 per cent.
While dry bulk carriers account for 16 per cent of the total fleet, the container vessels share stands at 5 per cent, as per the rating agency. With the global merchandise trade volume projected to slow down in CY 2023 and given the highest capacity additions in CY2023-CY2024, the container shipping segment is expected to be the worst impacted, it said.
The recovery in global trade is anticipated to have a positive impact on the shipping industry, indicating potential opportunities for growth and improved earnings, it said. The tanker segment is expected to maintain its previous year's performance in the current calendar year as well due to the lowest capacity addition and redistribution of crude trade flow by key consuming economies, CareEdge Ratings said.
The performance of the dry bulk carrier segment is expected to improve in the second half of CY2023 driven by supply-side dynamics, according to the report. The report noted that the financial performance of the two largest domestic shipping companies-- Shipping Corporation of India and Great Eastern Shipping Company-- reflects a consistent improvement in revenues and
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