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These stocks could benefit from severe disruptions in global supply chains


These shipping stocks could benefit from severe disruptions in global supply chains
CNBC
9 hrs ago
Weizhen Tan
Global supply chains have been severely disrupted this year by a slew of issues right as a resurgence in trade and strong demand for commodities meant more goods needed to be moved.
In a recent report, JPMorgan analysts noted ongoing bottlenecks such as port congestion as well as a shortage of containers and vessels.
Research firm TS Lombard noted that commodities have surged as Chinese demand recovered, boosting shipowners.
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Aerial view of shipping containers sitting stacked at Shenzhen Yantian Port on February 27, 2021 in Shenzhen, Guangdong Province of China. ....

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These Shipping Stocks Could Benefit From Severe Disruptions in Global Supply Chains


As parts of the world rebounded from the pandemic, a flurry of spending led to a shortfall of containers. That drove up prices and created massive delays in shipping goods from Asia to elsewhere. JPMorgan said the demand for goods has continued to be supported by an improving global economic outlook.
Research firm TS Lombard noted that commodities have surged as Chinese demand recovered. Demand for commodities from oil to lumber to corn has shot up this year as economies reopened and vaccination rates climbed although prices have been volatile recently.
Shipowners are benefitting from the booming commodity trade. Vessel earnings have been at their highest level in a decade so far in 2021 … owing to the rebound in trade volumes, particular minerals and grains into Asia, as well as to strong restocking of iron-ore and coal inventories by China, the firm said. ....

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