- The shipping industry - after struggling for years with overcapacity, price wars and freight rates far below breakeven levels - finally is showing signs of recovery, according to a WSJ analysis.
- In container shipping, big players have merged or formed alliances and most should swing to a profit this year after posting huge losses in 2016, the cost to transport a container in the benchmark Asia-to-Europe route rose 55% Y/Y in May, and Q1 container volume at Singapore rose 5% from a year ago.
- In drybulk shipping, demand this year is forecast to grow 3% sparked in part by surging Chinese iron ore imports, and capesize daily rates YTD have averaged ~$11K, 3x the rate in early 2016.
- Even in the oil tanker business, which got off to a rough start this year, prospective owners appear to foresee a recovery and have started a buying frenzy, with 69 new and used VLCCs bought YTD vs. only eight last year.
- Investors are noticing, as several stocks scored big gains over the past week: SB +26.1%, SALT +18.9%, NM +17.6%, SHIP +14.5%, EGLE +12.8%, SBLK +12.6%, NMM +7.6%, DSX +6.7%.
- Other potentially relevant tickers include DRYS, GLBS, SFL, KEX, SINO, GSL, GNK, DAC.
- Now read: DryShips: Don't Fall For The Dividend
Original article