Choosing a customs broker is an important decision for any business or individual importing goods into the United States. Your broker can help prepare your customs entry, classify your goods, calculate duties, manage documentation, and communicate with U.S. Customs...
Although importing cars from Canada can benefit importers and businesses, it can be confusing for the average shipper. Canada’s proximity to the US makes cross-border vehicle transportation relatively accessible. In addition to offering easy access, Canada is an...
Known as a confusing import in the international shipping industry, this article explains how to import acidified foods. Acidic foods are foods with a pH level of 4.6 or below. Some examples include vinegar, fermented pickles, lemons, artichokes, pickled vegetables,...
International and domestic shipping could soon see new regulations reshaping logistics industry compliance. In the last few months, two regulatory decisions have impacted five major sectors of the logistics industry. These include freight brokers, freight forwarders,...
Since the middle of last year, vessels sales have seen a steady increase. In correlation, shipping stocks from container and dry bulk sectors have also seen growth with tankers following the trend in early February of this year. While some believed that the stocks would slow down due to the coronavirus, more people bought goods that were shipped overseas internationally, which raised the demand for ships to move the freight and rose the prices of shipping stocks. That growth has accelerated even more in early February with several stocks from the dry bulk and tanker sectors reaching an over 30% increase.
How Does the NAV Correlate to the Shipping Stocks?
The net asset value can be described as the value of a company determined by subtracting the total asset value by the liabilities. Shipping stocks have tended to trade at a discount relative to the NAV over the past decade. Likewise, the asset value of the ships also tended to be greater than the rate to charter a ship. This meant that the value of the actual ships was higher than the value they were trading for on the market. Recently, the opposite effect happened where the rate for chartering a ship was higher than the asset value of the ship, which may explain why the shipping stocks rose in early February.
Potential Reasons for the Increase
A theory proposed for the sudden rise in shipping stocks in early February is that retail investors may have run up the price of the stocks similarly to how the price of the GameStop stock rose in January but not to that extent. Another theory is that stockholders are predicting that a global economic recovery may happen later this year. With various vaccines being rolled out at a remarkable rate and restrictions slowly being lifted, investors are preparing to take advantage of the profit opportunity.
A Sign of Things to Come
The coronavirus pandemic causes an economic shutdown and a halt to businesses globally. Over a year after the pandemic was announced, we are still feeling the effects around the world. Many could believe that we are at the beginning of an upturn. It is interesting to note that compared to other shipping stocks, tankers tend to do poorly but have been performing well recently. The purchasing of stocks in the tanker sector has increased alongside dry bulk and container sectors for the first time in over a decade. The growth of Shipping stocks may be a leading economic indicator showing a return back to normalcy.
A1WWL
The world of international shipping may sometimes be tricky without the right guidance or information. If you need assistance with your shipment or want to know more about shipping freight by means of the vessel, contact us at 305-821-8995.
📍1035 NE 125th St #320, North Miami, FL 33161, USA
🕒 Hours: 8AM – 5PM
