Shipping stocks have never been viewed as ‘hot’ in the world of stocks but since the COVID-19 pandemic, the entire landscape has changed. Investors now see that shipping is crucial to the global economy. When the pandemic brought the supply chains grinding to a halt, deep sea cargo ships stranded outside of ports, and a shortage of containers, many started to take notice of just how important shipping stocks are to the world. Even now the supply chain continues to struggle to meet the demands of consumers.
Opportunities for Investing in Shipping Stocks
Disruptions upset the world but create opportunities for investors. Shipping stocks are crucial to the global economy. Investors are now starting to take notice and make a move. However, investing is not without risks. Shipping stocks are very cyclical and companies often start to suffer when there is a downturn because many are heavily leveraged. Post-pandemic there is a huge demand for shipping stocks and they have started to spike and many are trading with market caps double what they were several years ago. However, investors who want to dip a toe should only look to the best-run companies that have an impressive track record to avoid a sudden downturn that could have a staggering financial impact.
Should You Invest in Shipping Stocks?
Marine shippers depend on massive vessels to move their freight across the world’s seas. The sheer size of the vessels makes them less likely to capsize so the stocks are usually fairly stable. With shipping stocks, you’ll typically enjoy sustained multi-year returns. They might not pay as well but they offer undeniable stability which is something a long-term investor might want to capitalize on.
If you are seeking a diversified portfolio, then shipping stocks provide income coupled with stability even if the economy could take a turn for the worse.
Stocks to Watch
| COMPANY | MARKET CAP | DESCRIPTION |
| A.P. Moller Maersk (OTC:AMKBY) | $61 billion | One of the world’s largest shipping companies, Maersk features port operations, logistics, supply chain management, and ocean-going vessels. |
| Matson (NYSE:MATX) | $4.74 billion | The Pacific shipping company Matson offers service from the U.S. to Hawaii and Alaska. They also have intrastate transportation. |
| Star Bulk Carriers (NASDAQ:SBLK) | $2.80 billion |
A Greek dry bulk shopping company, the Star Bulk is young but promising. . |
| Textainer Group (NYSE:TGH) | $1.79 billion | Textainer, is well respected for being the world’s largest owner of containers which are commonly used by international shipping companies. |
| Global Ship Lease (NYSE:GSL) | $1 billion | GSL operates vessels under the charters of other companies and is considered a leasing business.
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| Genco Shipping & Trading (NYSE:GNK) | $816 million | Genco has been around for a long time and is a dry bulk shipping company but recently it underwent a facelift and managed to pay down a considerable amount of debt.
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To learn more about shipping companies, please contact Sobel Network Shipping Co., Inc.
