Drewry publishes carriers' financial stress index

A new report from Drewry Shipping Consultants reveals that only two of the carriers tracked in the financial stress index are operating above the "distress zone".
 
Drewry Shipping Consultants's new Freight Shipper Insight provides up-to-date market information on demand trends, freight rate developments and macro-economic indicators specific to the ocean, air, rail and road freight sectors.

Key features of the report are two new products: Spot market airfreight rate benchmarks for cargo ex Shanghai to destinations in the US and Europe, and a freight operators's Z-score financial stress index.

The Z-score index aims to provide a quick reference to shippers who are increasingly concerned by the financial fitness of their service providers. The Z-score method was developed by US academic Edward Altman in the 1960's to predict the likelihood of a company's failure in the next two years, based solely on data from financial reports.

Most of the ocean freight related companies tracked in the index have low Z-score ratings, as do most airlines, whereas major freight forwarding companies have very safe ratings.

AP Moller-Maersk and Orient Overseas International, parent companies of Maersk Line and OOCL respectively, are the only ocean freight related companies with Z-scores above the "distress zone".

Zim had the lowest of all the selected freight companies rated.

The findings of the Z-score index highlights the fact that, while the broader global economy might be on the mend, certain sectors of the freight transport industry will take far longer to recover.

Source: Eyefortransport