Fitch Ratings

Despite a decline in demand for ocean cargo service at the start of the coronavirus pandemic last year, spot container freight rates soon began to increase, driven by carriers’ supply discipline, say shipping analysts for Fitch Ratings.

North American ports generally have numerous safeguards and strong financial cushion on their side in being able to weather the sizable ripple effect of the coronavirus pandemic, according to Fitch Ratings in a new report.

The coronavirus pandemic is having sizable and wide-ranging effects on the port space, both through disruptions to supply chains emanating from the first rounds of infection in Asia and government-imposed restrictions on individuals, businesses, and corporations alike, according to Fitch Ratings.

Prolonged trade tensions between the U.S. and China has created quite a bit of headline risk for U.S. ports, though Fitch Ratings' latest sector peer review shows that it has not trickled down to financial or rating performance.

Growth prospects remain healthy for ocean and air cargo segments heading into next year, though the trajectory figures to level off somewhat according to Fitch Ratings in its latest annual report.

A recent report issued by Fitch Ratings indicates that increased tariffs on bilateral U.S.-China goods trade may result in decreased traffic at certain U.S. ports. However, revenues are not likely to be similarly affected in the medium term, given the landlord-based operating model at many of the more exposed west coast ports.

Revenue growth remains healthy for all major U.S. transportation sectors, though recent events could level off the rate of growth for some segments in the coming months according to Fitch Ratings in its U.S. Transportation Trends spring report.

Global port throughput has shown resilience over the last 10 years with throughput growth outpacing economic growth rates despite volatility through the last recession. Containerization of cargo and increasing vessel sizes coupled with supporting infrastructure at ports have all contributed to these throughput trends.

Seaports on West, East, and Gulf coasts are all poised to compete on one major imperative: investment in transformational technologies.

Global logistics managers may see more rating changes for some U.S. ports over the next 12 months in the wake of an unusually active year of movement for the sector, say industry analysts at Fitch Ratings.

According to Fitch Ratings in its latest U.S. Transportation Trends special report, recent trade friction between the United States and China and the prospects for higher interest rates are not likely to affect growth for the major transportation segments for the foreseeable future.

U.S. ports are positioned for another solid year of growth, though the Trump administration's evolving stance on both domestic and international trade is a long-term development worth a close watch, according to Fitch Ratings in its latest sector briefing.

Following the close of its 2017 fiscal year, Panama Canal authorities announced that the entrepot welcomed a record 403.8 million tons—the largest amount of annual volume ever transited in its 103-year history. Industry analysts say the impact on U.S. ocean cargo gateways will soon become evident.

An otherwise stable outlook for U.S. transportation infrastructure next year will be clouded somewhat by questions surrounding tax reform, according to Fitch Ratings in its 2018 outlook report.

Major hurricanes that had hit parts of the U.S. in the recent past will lead to more tepid growth for U.S. transportation for the remainder of this year, according to Fitch Ratings in a new report. But analysts do not see any lasting disruption.