KBRA releases its outlook on the shipping sector, discussing key takeaways from 2021 and the various trends within the diverse industry heading into 2022.

The events of 2021 underscored the importance of shipping for the interconnectedness of the global economy. The UN Conference on Trade and Development (UNCTAD) estimates that a 1.5% increase in consumer prices in 2021 was solely due to shipping rates. KBRA expects the disruptions and bottlenecks experienced in the shipping sector to continue into the new year. The aggregate impact on credit is likely to be positive for most subsectors, but caution is warranted due to plenty of uncertainty.

The shipping industry is likely to remain unpredictable as myriad aspects of global supply and demand converge in various markets and with fragmented players. That said, KBRA expects shipping rates in most sectors to remain strong, laying the groundwork for another year of high profits, especially for container and dry bulk shipping.

Key Takeaways

• Container shipping rates: recent highs, macroeconomic factors involved, and KBRA’s outlook for 2022.
• Supply and demand trends in the dry bulk and tanker markets.
• Regulatory pressures facing vessels, including the impact on LNG shipping.
• Scrapping and scrap value trends heading into the new year.

Click here to view the report.

Related Publications

• ESG: KBRA Comments on Decarbonization of Shipping
• What a Year for Container Shipping

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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