Shipping companies to witness 5-7 per cent decline in revenue in FY 2025

As per reports, the domestic shipping companies are likely to witness a further 5-7 per cent decline in revenue in financial year 2025, amidst normalisation of rates. This follows a steep 23-25 per cent fall in their revenue in financial year 2023, after a 35 per cent growth in the previous year when charter rates improved and demand increased from China during the post Covid-19 pandemic period. CRISIL reported that the average operating margin may continue to moderate to 33-35 per cent in financial year 2025, which will be driven mainly by the correction in charter rates. However, it will remain higher than the pre-Covid-19 pandemic levels of 25-30 per cent.