Publicly-listed shipping companies see a chance to ‘stop the rot’ in share prices as the fall in the Shanghai Container Freight Index (SCFI) slows.
The eight leading container shipping stocks have lost an average 45% of their value since the start of the year following the peak in the SCFI on 7 January.
It marked a turning point for larger carriers such as Maersk and COSCO whose share prices had previously held up in 2021 on the back of strong contract business and smaller exposure to the Transpacific trade. As of end Oct’, the stock prices of the three carriers were down 37% & 45% on the year.
Heavily spot market and Transpacific-exposed carriers as HMM, Yang Ming Evergreen Marine and Wan Hai saw their shares decline much earlier, in mid 2021. The three lines’ shares have fallen on average 49% since 1 Jan’.