“Such adverse developments may last for an extended period and are the primary drivers for the negative outlook,” Peter Choy, the report's lead author and a senior credit officer at Moody's is quoted as saying. “Although the credit crisis may result in the cancellation of some new building orders, a correction in the excess supply from a sizeable order book will take a long time.”
The report has particularly noted the negative effect on the dry-bulk sector, which has suffered as a consequence of suspension of trade credit, unstable operating costs, low freight rates and declining demand for commodities, which have manifested in a drop in the BDI.
However, analysts at Moody's expect companies “such as MISC, BW Shipping, NYK, and MOL," to benefit from "long-term agreements on many vessels, adequate liquidity through good access to banks, diversified trade and types of vessels.”