Drewry examines carriers' financial health

LONDON's Drewry Shipping Consultants has started publishing a new product "Freight Shipper Insight" that examines the financial position of 25 major container shipping lines, airlines and logistics firms for which financial information is available.

Included in Drewry's new Freight Shipper Insight is a Z-score table, which measures the financial health of the transportation and/or logistics services provider, and their parent companies, to "predict a company's probability of failure in the next two years, using data from a company's financial statements," said the Drewry statement.

Out of the 18 ocean liners scrutinised, only OOCL and Maersk Line were said to be above the so-called "distress zone," with the others at "high risk" of going bankrupt.

The other shipping lines included in the table that listed the strongest companies first are: APL, CMA CGM, Horizon, MOL, Evergreen, Cosco, Wan Hai, "K" Line, NYK Line, Hyundai Merchant Marine, Hanjin Shipping, China Shipping, Yang Ming, CSAV and Zim that was ranked last out of the 25 companies measured.

Three companies were determined to be in a "safe" position and they were logistics giants C H Robinson, Panalpina and Kuehne + Nagel.

(Source: www.schednet.com)