Wall Street Storm: Shipping Stocks Still Rising
Although we are several months removed from the COVID-19 Pandemic, companies are still feeling the effects of the economic crisis and concern. As shipping stocks continue rising, companies wonder how this will continue to affect their products and relationships with other industries. The good news is that high stocks may help companies survive.
What Is Happening With Shipping Stocks?
While many companies are experiencing severe shipping concerns, commodity shipping stocks are still rising despite the rough trading seasons. Trading rates for dry bulk goods and tankers continue rising and doing very well, according to recent numbers from experts. Product tanker stocks and dry bulk stocks show an increase over the past several months as demands increase. Numbers show products tanks are earning over times what they did last year. Experts believe the Russian/Ukrainian war is producing a higher demand for products and therefore, shipping stocks are rising. As values for product tankers increase, the owner’s net asset value (NAV) will also rise. If the rise continues, companies will make more money and hopefully have more financial security.
Dry bulk shipping stocks, such as grain, coal, iron ore, and other minerals, are rising on the NASDAQ. In some cases, they are rising between 41% and 67%. While some companies may experience lower rates, most are still higher than they were before the pandemic. If European companies continue to ban Russian imports because of the current war, the demand for dry bulk goods may continue to increase.
While some parts of China are still experiencing shipping and production halts, some trading is still flowing. Even the slow flow of production will keep stocks rising. However, any shutdowns could lead to a plummet in stocks and a problem for shipping fleets. Demand may slow down halt capacity, causing an issue for companies around the world.
What Does This Mean For Companies?
Even though product tanker stocks are doing better than crude tanker stocks, crude tanker stocks are improving more than last year. Container shipping stocks seem to increase more than any other current shipping stocks. This is good news for companies. However, there are a few lingering concerns. Container shipping companies are under pressure because current inflation rates directly affect them. If consumers are not supplying necessary demands, stocks may plummet. While there is a current peak in rates, experts are carefully watching for a potential drop. If this happens, it could affect shipping container companies.
What does this mean for companies? If your business relies on other shipping container companies to transport your products, shipping stocks are something to monitor. A drop in shipping stocks could ultimately present an issue with freight shipping companies or domestic freight shipping services. Companies should monitor freight shipping rates and consider a more affordable shipping solution. Having an alternative shipping solution will prevent a production halt for companies and save their relationships with customers and other companies.
Trifecta Transport Can Help
Partnering with another company for your shipping needs can help you navigate fuel shortages, shipping issues, fluctuating stocks, and more. If your company is dealing with time critical shipping concerns, the team at Trifecta Transport can help. We are a team of professional experts who help companies manage their shipping logistics. We understand the pressures of managing a business and worrying about shipping.
Our team takes time to help you choose the right shipping methods for your business. We are an all-in-one solution for your transportation needs.
Contact Us Today
Need help with shipping logistics or have questions about shipping methods? Our team can help you choose shipping methods, manage communication, and more. Contact Trifecta Transport today and ask about our services.