Even though COVID-19 pandemic restrictions hit the shipping industry hard, it is expected to grow significantly in the near term thanks to the increasing demand for raw materials from reopening industrial activities around the globe. So, we think it could be wise to add shipping stocks International Seaways (NYSE:INSW), Globus Maritime (GLBS), and Performance Shipping (PSHG) to one’s watch list now. Wall Street analysts expect them to rally more than 60% in price in the near term. Read on. COVID-19 pandemic restrictions led to a shortage of shipping containers and soaring freight costs due to a demand-supply imbalance. In addition, Chinese authorities’ intervention in commodities trading continues to affect the shipping industry.
However, according to a SpendEdge report, the container shipping industry is expected to grow at a 3.53% CAGR through 2024. Moreover, the Baltic Exchange Dry Index (BDI) rose 2% to 4,651 yesterday, its highest level since November 2009. With the increasing demand for commodities, the shipping industry is expected to grow significantly in the coming months.
Against this backdrop, we think it could be wise to add shipping stocks International Seaways, Inc. (INSW), Globus Maritime Limited (GLBS), and Performance Shipping Inc. (PSHG) to one’s watchlist now. Wall Street analysts expect these stocks to rally more than 60% in price in the near term.