$ubmachine
12 meses hace
ZIM - Red Sea related stock!
Article from german stock portal, Jan 04, 2024 Threat in the Red Sea - Freight rates are exploding - so are shipping stocks!:
Google-Translation:
Threat in the Red Sea - Freight rates are exploding - so are shipping stocks!
The repeated attacks by Yemen's Houthi rebels on ships in the Red Sea are causing freight rates to explode - shipping stocks such as Hapag Lloyd and ZIM Integrated are rising.
Summarized for you
Freight rates skyrocket due to attacks in the Red Sea
Detours around the Horn of Africa increase transport costs
Shipping companies benefit, shipping stocks rise
The ongoing attacks on cargo ships in the Red Sea have long had tangible consequences for the markets. The prices for oil and gas rise with every new attack, but now freight rates have also exploded.
The shipping companies are preparing for the danger posed by the Iranian-financed rebels and are increasingly forgoing passage through the Suez Canal.
For some shipping routes, this means a week-long detour around the Horn of Africa, reducing overall available freight capacity and causing transport costs to skyrocket.
Costs are sometimes doubled
The cost of shipping a standard container from Asia to Europe has doubled in the past few weeks to over $4,000. Transports to the Mediterranean region have become even more expensive, costing over $5,000.
However, due to dwindling transport capacities, routes that are not geographically affected have also become significantly more expensive. The cost of a container from Southeast Asia to the USA has skyrocketed by around 60 percent. This could make it much more difficult to combat inflation in the coming months.
Shipping companies benefit, shipping stocks in demand
Even though the detours sometimes mean delays lasting weeks, shipping companies are profiting from the rapidly rising transport costs. Freight companies that specialize in short-term contracts in particular are benefiting from the sharp rise in spot prices.
In recent days, the shares of Danaos and ZIM Integrated, two of the largest specialists in this niche, have become particularly expensive.
In addition to smaller providers specializing in the spot market, well-known names such as the German Hapag Lloyd, which is now trading at double-digit price premiums, and the Danish A.P. Moeller-Maersk, the world's largest container ship shipping company, was asked.
The price gains of the past few days are likely to please quite a few investors, as many shipping stocks have been in stable downward trends since the beginning of 2022 at the latest, when global freight rates reached their peak.
With rates now becoming more expensive again, a bottom could be found and the industry could be ripe for a turnaround.
Something for everyone
Conservative investors should particularly look at Danaos, Hapag Lloyd and A.P. Take a closer look at Moeller-Maersk; these shipping companies reliably pay out a performance-related dividend.
ZIM Integrated is worth a look for traders and risk-conscious investors: the stock has a short ratio of over 24 percent. If the price gains of the previous days continue, there could be a short squeeze and a price explosion.
Conclusion: Good hedge, promising despite dangers
Shipping stocks are in demand not despite, but because of the current threat situation and are a good hedge against the potential effects of a lasting impairment of global shipping. Meanwhile, the breadth of the industry offers opportunities for all types of investors.
Scotttrader80
1 año hace
NEW YORK, Sept. 12, 2023 /CNW/ -- Ship4wd, a leading global digital freight forwarding solution platform, celebrates a new milestone in its journey to disrupt the status quo within the international shipping and logistics sector while supporting small and medium-sized businesses (SMBs). Ship4wd is proud to announce that the company's customers were provided with over US$3 million in credit lines during the inaugural month of its financing solution's launch, providing direct funding access to SMBs to pay for shipments up to 90 days from the cargo delivery date, so they can better compete and succeed in today's challenging global economic situation. at $11.35 ZIMS new initiative is comng across as a sinking ship, will ZIM stay afloat?
TucsonPhil
1 año hace
Recessions are always bad for the shipping companies. Consumer spending is taking a hit, because nobody wants to carry that doodad with a 20%+ interest rate on their credit card. Powell is doing his best to force a depression. We will not see 2% inflation rates again, despite the FEDs efforts. Once the interest-jacking cycle ends, consumer's pent up lust for buying will snap back with a vengeance and we will see a huge spike in everything supply-chain related.
Zim is embracing technology and financing like no other shipper, so I see them as a front-runner in the space, so buy them at these sale prices and laugh when it is back at $100/share.