Moody's: Global transportation industry outlook largely steady in 2017; shipping challenged by oversupply

Airline profitability will weaken slightly in the year ahead, Moody's Investors Service says in its 2017 outlook for the global transportation industry. Aircraft lessors' margins will weaken amid stiff competition, while shipping companies will continue to be challenged by an oversupply of vessels. North American railroad operators will see prices rise as freight volumes stabilize.

Moody's Global Transportation 2017 Outlook for the global shipping industry in 2017 is negative, reflecting continued oversupply and a 7%-10% decline in EBITDA. Dry bulk freight rates will remain low due to subdued demand, though deferred vessel deliveries, cancellations and scrapping will help curb net capacity growth.