Mumbai: The outlook for India shipping industry in 2011 is not positive, according to a report released by credit rating agency Fitch. The agency's report shows freight rates will continue to remain depressed due to the demand-supply imbalance caused by a net increase in capacity exceeding demand.
Affacted by global shipping industry trend, revenues and EBITDA margins of Indian shipping companies have been negatively affected by lower rates in 2009 and 2010. Few of the companies would carry out aggressive capital plans. The debt levels of Indian shipping companies are not likely to reduce, and those with constrained cash flows are likely to face some refinancing pressure. [26/01.11]
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