Published on 15 Apr 2024 on Zacks via Yahoo Finance
3 Shipping Stocks to Bet On From a Thriving Industry
The Zacks Transportation - Shipping industry is benefiting from an improvement in demand for goods and commodities from pandemic lows. Moreover, the prevalent tensions in the Red Sea and the resultant limited container availability caused a surge in freight costs. The re-opening of the China economy came as good news for the industry participants. The strong outlook for the Capesize market also bodes well for shipping stocks.In the prevalent scenario, we advise investors to buy shipping stocks like Danaos Corporation DAC, Costamare CMRE and Seanergy Maritime Holdings SHIP.
Industry Overview
The companies belonging to the Zacks Transportation - Shipping industry, which is cyclical in nature, offer liquefied natural gas and crude oil marine transportation services under long-term, fixed-rate contracts with energy and utility bigwigs. Most participants focus on the seaborne transportation of crude oil and other oil products, globally. The industry also includes players that own, operate and manage liquefied natural gas carriers. Some participants are owners and operators of containerships for charter. The change in the e-commerce landscape following the pandemic implies that shippers are relying more on third-party logistics providers. The well-being of the industry participants is directly proportional to the health of the economy. With economic activities gaining momentum, after coming to a standstill during COVID-19, the shipping industry is growing again.