Supply Chain Digest Says... |
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| Drewry says the key point is that container shipping stocks are highly vulnerable to world events and other news-driven catalysts, and often rise sharply with various events and tensions across the globe. |
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If you invested in most container shipping stocks in 2019 and held a basket of them through today, you likely did very well for yourself.
That according to new commentary from the maritime analysts at Drury under its Container Insights banner – good to see, as activity in this interesting blog disappeared for much of 2024 but seems to be back, with two recent posts.
We’re not sure what triggered the analysis, but Drewry finds that someone investing $1000 at the start of 2019 on all the companies included in Drewry Maritime Financial Research’s Container Equity Index would have seen that investment more than triple to about $3,150, as of February 2025. The same investment in the S&P 500 would have returned $2,346.
Companies in the Drewery index are: AP Moller Maersk, Cosco (A Share), Evergreen Marine, Hapag-Lloyd, HMM, Matson, OOIL, RCL, Samudera, SITC, Wan Hai, Yang Ming, and Zim.
However, the container shipping sector returns are a little deceiving. Drewry notes that the extraordinary performance of container shipping stocks was entirely the result of extraordinary events.
Drewry comments that “as the old saying goes, there is “opportunity in a crisis” and it was Covid and the ensuing supply chain logjams that sent liner shares soaring from November 2020 through May 2022. They have been trending down sharply since then.
As of February 2025, Drewry’s Container Equity Index is down 50% from its peak. See the graphic below:
(See More Below)
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CATEGORY SPONSOR: SOFTEON |
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Drewry says the key point is that container shipping stocks are highly vulnerable to world events and other news-driven catalysts, and often rise sharply with various events and tensions across the globe, and then pull back as the impact of a crisis abates.
This is often the opposite pattern than most other stocks.
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