Regional shipping recovery 'will lag global ports'
Global financial services giant Morgan Stanley has stated that the recovery in the regional shipping industry will be slower than elsewhere, and that the Middle East port downturn is being underestimated by the market.
The remarks were made as the firm cut its price target on DP World by 59%.
“Given that the UAE economy has slowed later than the rest of the world, we think the destocking phase, and hence recovery in volumes at Jebel Ali, will lag global ports," Morgan Stanley said, according to Reuters.
"A faster-than-anticipated recovery in global growth and Jebel Ali throughput remaining resilient would make us more positive on the shares," the US company added.
DP World’s freight volumes in its home markets have remained strong, but the company admitted during the release of its full-year 2008 results that the first months of 2009 had seen tonnage dropping off dramatically.