My ongoing view of the global container shipping industry continues to be bright, and those seeking a good investment vehicle should consider investing in the global shipping industry. Comparing news headlines over the past year would make one feel differently about the opportunity, but in the last few months, analysts have become increasingly optimistic in their outlook for the maritime shipping industry. For investors seeking the best investment return, perhaps this sector is something to consider.
Here is What My Information Sources Are Forecasting:
- Maersk Line plans to boost rates on cargo from the Middle East and Indian subcontinent, starting February 15, 2014.
- The world’s leading container lines hope to increase rates in multiple trade lanes in February, March and April 2014.
- U.S. containerized imports are projected to increase 6 percent in 2014, up from 3.5 percent growth in 2013, according to Journal of Commerce economist Mario Moreno.
- Seashore 2014 report reflects both dry and wet goods shipping forecasting an up trend
- Braemar Research January 2014 highlights past performance and a positive outlook for 2014.
What Does This Mean For Investors?
For me, it means that the mixed reviews from the 4th quarter of 2013, are not looking as glum as earlier reviews and reports appeared, and on the whole; they appear quite optimistic. It also indicates to me that the strength of the recovery of the U.S. market (however weak it may seem at times) and the predicted growth in Europe for Asian goods, means positive things for the carriers despite the lack of China’s economic growth. Furthermore, Singapore’s economy is ticking up, as well as Japan’s. This means sector optimism is steadily rising, particularly from the viewpoint of many shipping industry leaders and the international investment community.