Nordic American Tankers

Shipping stocks hit fresh highs amid COVID-era supply chain chaos

shipping stocks

The mainstream press is now awash in articles on global supply chain breakdowns, exorbitant shipping costs, clogged ports, emptying store shelves and rising inflation. That’s good news for sentiment toward many (but not all) ocean shipping stocks.

After a summer lull, shares of bulker owners, container lines, container-ship lessors and liquefied natural gas (LNG) carriers are moving up again and hitting new peaks. Stocks of crude and product tanker owners — who are heavily exposed to delta...

https://www.freightwaves.com/news/shipping-stocks-hit-fresh-highs-amid-covid-era-supply-chain-chaos

A cruel summer for shipping stocks as tide turns

shipping stocks

You could be forgiven for unloading your tanker stocks — the tanker market just suffered its worst six months in three decades. But container shipping and dry bulk stocks? Container shipping remains at an all-time high. In dry cargo, spot rates for midsized bulkers continue to top $30,000 per day.

And yet, shipping stocks have fallen across the board for the past three weeks. June 25 was the turning point.

Jefferies analyst Randy Giveans told American Shipper, “There’s nothing special about June...

https://www.freightwaves.com/news/a-cruel-summer-for-shipping-stocks-as-tide-turns

Shipping stocks are suddenly revving up across the board

shipping stock trading screen

Tanker spot rates are horrible. Rates for gas carriers have fallen off a cliff. Only container shipping is booming. But you wouldn’t know that by looking at ocean shipping stocks. Across every shipping sector, stocks are up double digits in February.  

“Shipping stocks have been on a tear for the past several weeks,” said Clarksons Platou Securities analyst Omar Nokta during a Capital Link-sponsored virtual event on Tuesday.

“We’ve gotten used to seeing pockets [of activity] for tankers or...

https://s29755.pcdn.co/news/shipping-stocks-are-suddenly-soaring-across-the-board

Crude tankers stuck in ‘rate hell’ but floating-storage pain wanes

crude tankers

“Yea, though I walk through the valley of the shadow of death, I will fear no evil …” begins a psalm that might comfort today’s crude-tanker investors.

Crude tankers have been condemned to an extended stay in “spot-rate hell,” lamented Stifel analyst Ben Nolan in his latest quarterly outlook. He wrote that the sector is only at the “halfway point in the very long road through the Valley of Death.” Nolan quoted Winston’s Churchill’s advice: “If you are going through hell, keep going.”

Clarksons...

https://www.freightwaves.com/news/crude-tankers-stuck-in-rate-hell-but-floating-storage-pain-wanes

Shipping’s Wall Street saga: Rags to riches to rags to occasional riches

Wall Street bull

Container line ZIM just pulled off something extraordinary in ocean shipping: It priced a U.S. initial public offering (IPO).

That doesn’t sound like much of an achievement. The U.S. IPO market is booming; proceeds surged 69% in 2020, according to Renaissance Capital. Yet prior to ZIM (NYSE: ZIM), there hadn’t been a U.S. shipping IPO since Barack Obama was in the Oval Office, when Peter Georgiopoulos-led Gener8 Maritime, a company that no longer exists, went public.

ZIM got its IPO done Thursday...

https://www.freightwaves.com/news/shippings-wall-street-saga-rags-to-riches-to-rags-to-occasional-riches

Q3 stock recap: Ocean shipping’s winners and losers

stock market

You don’t need to know the latest quarterly results to know how shipping stocks are doing. It’s all about the present and future rates, not what happened months ago. And when it comes to rates, container-ship owners are doing much better. Tanker and dry bulk owners are still doing poorly.

Ocean shipping stocks report quarterly results later than many other business segments. In some cases, a shipping company won’t report its prior quarter until nearly the end of the current quarter. Given how...

https://s29755.pcdn.co/news/q3-stock-recap-ocean-shippings-winners-and-losers

Tanker shipping at risk of rare winter hibernation

tanker

Three months ago, tanker owners hoped for a quick rebound and talked up fleet expansion via consolidation. There’s little talk of growth today. And a growing number of executives and analysts fear the typically strong winter season will be a bust.

Tanker stocks were up Monday on the Moderna vaccine news, just as they were a week before on the Pfizer vaccine news. Yet beyond such sentiment bumps — which Evercore ISI analyst Jon Chappell characterized as “likely a mix of short covering and...

https://s29755.pcdn.co/news/tanker-shipping-at-risk-of-rare-winter-hibernation

How vaccine and Biden victory will impact shipping

vaccine and biden

The stock market soared on Monday in the wake of President-elect Joe Biden’s victory and Pfizer’s vaccine announcement. Both news bombshells will affect ocean shipping — with different consequences for container and tanker shipping.

Worst-case stimulus scenario for containers

Federal stimulus has had an enormous effect on consumer spending power, and consequently, containerized imports. According to analysts at Evercore ISI, the best-case scenario from a stimulus perspective would have been an...

https://www.freightwaves.com/news/how-vaccine-and-biden-victory-will-impact-shipping

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