Although inflation hit a 40-year high in November, shipping companies are expected to make a fortune, taking advantage of increased demand and high freight prices. So, we think it could be wise to scoop up fundamentally sound maritime shipping stocks Mærsk (AMKBY (OTC:AMKBY)), ZIM Integrated Shipping (ZIM), and Safe Bulkers (NYSE:SB). So, let’s examine these names.In November, inflation surged to a 40-year high of 6.8%. Consumer prices have risen at their fastest clip since 1982. These inflationary pressures have forced the Fed to act, and it has promised to halt its pandemic-driven asset purchases early next year and will likely raise interest rates three times in 2022 to counter the inflation threat.
But supply chain issues persist and are expected to last longer than expected. While many companies have been harmed by supply chain issues, shipping companies are expected to benefit because they can exploit strong demand as worldwide trade surges and raise freight prices. According to a Drewry report, container shipping pre-tax profit for 2021 and 2022 could be as high as $300 billion. The industry brought in a mere $25.40 billion in 2020.
Given this backdrop, we think it could be wise to invest in quality shipping stocks A.P. Møller - Mærsk A/S (AMKBY), ZIM Integrated Shipping Services Ltd. (ZIM), and Safe Bulkers, Inc. (SB). They each possess a solid combination of growth attributes and fundamental strength.