Published on 19 Mar 2024 on Zacks via Yahoo Finance

Shipping Industry Rises 20.6% in 6 Months: More Room to Run?

The Zacks Transportation - Shipping industry is benefiting from the upbeat liquefied petroleum gas (LPG) demand. The buoyant demand scenario pertaining to the export of LPG, like propane, has served the U.S. economy well. The country is the largest exporter of gases like propane and butane. This has boosted the prospects of transporters of LPG. Notably, seaborne LPG gas volumes have been on the rise since the pandemic.

With the reopening of the China economy, the entire shipping industry heaved a sigh of relief. Notably, ocean shipping is hugely dependent on China. This is because China is not only a key manufacturing hub but also sees significant demand for goods and services, courtesy of the country’s large population.

Additionally, as fuel expenses represent a key input cost for any transportation player, the fall in oil prices bodes well for the bottom-line growth of shipping stocks. Notably, oil prices declined 1% in the past six months.