Covid-19: Icra outlook on bulk, container, offshore negative in near term

Tanker freights see upside as falling oil prices come to rescue

The near-term outlook for major shipping segments like dry bulk, containers and offshore is negative as global trade will be impacted due to the Covid-19 outbreak, Icra said in its note today.

The exceptions to this trend, however, are oil tankers, where the sharp drop in oil prices has led to an increase in demand - both for supply of oil and for floating storage.

As a result, tanker rates significantly increased though their sustainability beyond the near term remains to be seen.

While the overall outlook is challenging in the near-term, the impact on shipping companies with a high share of tankers