Greece-based shipping company Seanergy Maritime (NASDAQ:SHIP) reported disappointing financial results for the quarter ended December 31, 2020. The question now is, will it recover as the broader shipping industry gradually recovers with the reopening of the global economy? Let’s find out.Like most shipping companies, Athens, Greece-based international shipper Seanergy Maritime Holdings Corp. (SHIP) suffered a major setback from COVID-19 related travel and other restrictions. Consequently, the stock lost more than 56% over the past year to close yesterday’s trading session at $1.09. It is currently trading 81.6% below its $5.92 52-week high.
As the global economy gradually reopens, the demand for several commodities, including coal, iron ore and steel, is expected to grow in the coming months, which will increase the demand for shipping.
But even though SHIP transports primarily iron ore through its dry bulk transportation services, it is not well-positioned to capitalize on the shipping industry’s recovery in the near term, and so a question hangs as to the degree the company’s operations and its stock price can recover lost ground?