The global shipping market is entering a gradual recovery period from this year after hitting the bottom at the end of 2011, said an analyst with Woori Investment & Securities of South Korea.
“As shipping rate is in growing trend, shipping industries would see improvement of earnings in the second half this year,” said analyst Song Jae-Hak in a note last Friday.
Song explained that the stagnant global economy has resulted in shipping companies posting operating losses in the first quarter of 2012. But the freight rates of containerships and bulk carriers are in an uptrend in the long-term.
“Despite eurozone crisis, global economy is expected to recover gradually. Shipping industries would see the black after the third quarter this year due to increased shipping volumes and rates. Also, the oversupply issue would be relieved soon,” he said.