COVID has been great for stocks. In ocean shipping, container and dry bulk shares rode the wave. Tankers stocks sank.
Liners are paying historically high rates to charter ships and maximize their exposure to the booming freight market.
As cargo shippers struggle, container-vessel companies rake in massive profits. Early signals point to record Q1 results.
Newbuild-to-fleet ratio now 15.3%, up from 9.4% in mid-2020. But orders are not high enough yet to wave red flags.
Container, dry bulk and tanker stocks push forward. Biggest winner since mid-2020: Danaos, up (this is not a typo) 1,202%.
Even after a wave of just-ordered container ships is delivered by yards, cargo shippers are unlikely to see lower freight rates.
A Biden administration teamed with a Democratic Congress should lead to even more stimulus, a recipe for even more container imports.
Successful IPO by ZIM would offer investors direct exposure to trans-Pacific freight-rate craziness, but not without risks from debt load.
Ocean carriers toed the line on capacity control in 2020. What does this new normal mean to shippers, yards and leasing companies?
Container shipping stocks are back to pre-COVID levels whereas many tanker and bulker stocks are down by double-digits year-to-date.
