Breaking News
Get 45% Off 0
💰 With a 129% YTD gain in the bag, these are our AI’s top global picks for March
Read now

Should We Invest In Shipping?

By Sunshine Profits (Sébastien Bischeri)Market OverviewApr 22, 2022 11:54AM ET
www.investing.com/analysis/should-we-invest-in-shipping-200622726
Should We Invest In Shipping?
By Sunshine Profits (Sébastien Bischeri)   |  Apr 22, 2022 11:54AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
NG
+6.46%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

While commodity prices soar, is it worth considering investing in the logistics, maritime, and shipping industrial sectors, or is it too risky?

One of Europe’s largest discount retailers has set up its own company, Tailwind Shipping Lines, to respond to container shortages. With annual profits of nearly 3 billion euros, the group has plenty of the necessary capital. The objective is to ensure the smooth flow of delivery chains for the group’s supermarkets. On the other hand, with sanctions on Russian oil and gas, we could see more tankers crossing the oceans containing liquefied natural gas (LNG).

Here are a few reasons to invest in that logistics-driven sector:

  • container rates are still high, supported by energy prices and demand recovery;
  • when demand is growing for goods, international trade through maritime routes tends to flourish;
  • Following the reduction of vessels in Shanghai due to China’s zero-COVID policy and thus forced lockdowns within one of its major economic centers, there was a slowdown that may give some opportunities to enter the transportation market.

The volatility in that market is high since shipping rates can be very variable, as can the shares of ship owners. Therefore, it is important to highlight that this market is a high-risk area that relies on many different and often unpredictable variables. Among the recent events that have marked the history of maritime transportation, there was the famous Evergreen’s carrier ship that got stuck in the Suez Canal. You probably all remember that, as it paralyzed the maritime flow for days and even provoked worldwide supply-chain disruptions.

Should We Invest In Shipping?
 

Related Articles

Should We Invest In Shipping?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Jeff Page
Jeff Page Apr 23, 2022 1:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Can you share a link for day rates?
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Apple
Continue with Google
or
Sign up with Email