A new report created by Standard & Poor's (S&P) Ratings Services states that, due to healthy economic conditions, the three major segments of the European transportation industry are speeding along in 2007.
S&P's credit analyst Eve Greb said, “The logistics, express and mail segments are being helped by M&A, industry globalisation and good market conditions.”
S&P also said that European airline companies had a stronger-than-average start to the year thanks to buoyant long-haul premium demand, support from fuel surcharges and the benefits of cost cutting. However, the ratings agency forecast that the shipping industry is showing signs of running out of steam as considerable new ship capacity will be delivered over the coming years which could lead to a demand and supply imbalance.
“The dramatic structural shift in shipping demand over the past few years, which is largely the result of China's exceptional growth and its impact on world trade, has led to an unprecedented rush in new-build ordering across the major segments. These vessels are now being delivered into the market en masse, and are bound to take some air out of a steaming shipping market,” S&P's credit analyst Andreas Kindahl added.
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