Shipping stocks hit decade-plus highs as Hormuz turmoil tightens capacity

Price ActionGeopolitics

โดย Seeking Alpha·

Summary · why it matters

A basket of 35 U.S.- and European-listed shipping stocks tracked by Lloyd's List Intelligence has climbed about 68% this year, more than five times the S&P 500's gain, and 82% over the past 12 months. Crude-tanker stocks have led the rally, up 120% year-to-date, followed by car carriers, gas carriers and dry-bulk shippers. Andreas Povlsen, managing director at Hayfin Capital Management, said shipping provides a hedge to geopolitical instability, noting that freight markets have benefited from volatility, including the Covid-19 pandemic, Houthi attacks in the Red Sea, and Russia's invasion of Ukraine. Danaos shares are trading at their highest level since 2008 after a 60% surge this year, while Frontline and Teekay Tankers haven't been this expensive since 2011, BW LPG is at a record, and International Seaways hit an all-time high last week. The Breakwave Tanker Shipping ETF, which trades near-dated crude-tanker forward freight contracts, has surged 650% since the Middle East war began in February and more than 2,300% this year. Nicolas Tirogalas, CEO of Tufton Investment Management, added that shipping now has to go further, and tonne-miles have increased, boosting demand for oil and chemical tankers, dry-cargo bulkers and gas carriers.