German shipping sector stays afloat despite weaker economy

Germany's shipping industry remains resilient despite sluggish economic growth and global trade tensions, according to a study by consultancy firm PwC Germany.

The annual survey of executives from deep-sea shipping companies found that 93% of firms reported full capacity utilization. A majority, 58%, expect business to grow over the next 12 months, unchanged from last year, while only 4% foresee a downturn, compared with 7% a year earlier.

The study said seven out of 10 shipping firms are now largely independent of domestic industrial production, insulating them from a weak manufacturing output. Nearly two-thirds of executives also believe global transport volumes will not decrease in the coming years, despite tariffs and trade barriers.

However, PwC warned of "rough seas ahead," citing geopolitical tensions and the need for restructuring and investment.

Falling freight rates could pose another challenge: Only one in five respondents expect prices to rise in the coming year, down sharply from 44% last year, while more than a third anticipate declines.

Executives in the container shipping sector were notably more cautious, PwC said, though lower freight prices could benefit other industries reliant on seaborne transport.