Moody's: negative view for Asia Pacific shipping

Moody's Investors Service said it has negative outlook for all three shipping sectors of dry bulk, tankers, and liners in Asia Pacific over the next 12 to 18 months.

The global economic downturn, tightening bank credit, increased volatility in currencies and financial markets have aggravated the already surplus shipping capacity amid a sharp drop-off in demand for shipments of containerized goods, oil and bulk commodities, Moody's said in a new report. Such adverse developments may last for an extended period and are the primary drivers for the negative outlook, the agency said.

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, Moody's said.

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