Slower economic growth, deteriorating export competitiveness and weak liner profitability are narrowing[ds_preview] the headroom within the ratings of Chinese port operators, credit rating agency Moody›s Investors Service says. A recent Moody’s report on Chinese ports highlights that port operators in China are facing major headwinds from slower economic growth and a weaker throughput outlook, which – due to the high fixed costs of port operations – could lead to margin pressure. Overcapacity in the liner industry is exacerbating this pressure on the operators’ margins. Moody’s forecast global containership capacity will increase by 4.5%-5.5% in 2016, outpacing the expected demand growth of 1.5%-2.5%.
