Even though the advent of COVID-19 omicron variant-led infections hinders the shipping industry’s recovery, the demand for marine shipping has been rising rapidly with reopening sectors and increasing demand for goods worldwide. So, we think ZIM Integrated (ZIM) and Seanergy Maritime (NASDAQ:SHIP) should benefit. But which of these two stocks is a better buy now? Read more to find out.Headquartered in Haifa, Israel, ZIM Integrated Shipping Services Ltd. (ZIM) provides international container shipping and related services. The company offers seaborne transportation and logistics services. In comparison, Athens, Greece-based Seanergy Maritime Holdings Corp. (SHIP) is an international shipping company that engages in the seaborne transportation of dry bulk commodities, primarily iron ore and coal worldwide.
Thanks to a significant supply and demand imbalance, most marine shipping operators have been witnessing solid demand. Furthermore, record high freight rates due to high post-pandemic demand for manufactured goods are helping maritime shipping companies expand their profit margins. Rapid digitization, automation in logistics, and growing cargo shipping services across industries are expected to drive the growth of the marine shipping market. According to a report by Market Research Future, the cargo shipping market is expected to grow at a 5.2% CAGR from 2022 - 2030. Therefore, both ZIM and SHIP should benefit.
Over the past six months, ZIM shares have gained 6.3% in price, while SHIP has delivered negative returns. Also, ZIM’s 95.9% gains over the past nine months are significantly higher than SHIP’s negative returns.