SINGAPORE (Dec 21): DBS Group Research is keeping its “neutral” stance on the offshore and marine sector amid a slow pick up in new orders.

“The overall conventional shipping market is expected to remain on a recovery path, albeit gradual,” says lead analyst Ho Pei Hwa in a 2019 outlook and strategy report.

Ho notes that global orderbook-to-fleet ratio has dropped to a low of less than 10%, implying moderating new supply going forward. However, demand growth is also expected to slow down given lower GDP growth and trade tensions.

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