Container ships and oil tankers wait in the ocean outside the Port of Long Beach-Port of Los Angeles complex, amid the coronavirus disease (COVID-19) pandemic, in Los Angeles, California, U.S., April 7, 2021. REUTERS/Lucy Nicholson/File Photo
U.S.-listed shipping stocks were a mixed bag on Wednesday following President Donald Trump’s re-election as investors responded to anticipated policy changes that could reshape the landscape of energy, trade, and global shipping.
Tanker stocks presented a varied picture. DHT Holdings Inc. (DHT) and Nordic American Tankers Ltd. (NAT) saw gains of 3.99% and 4.56% respectively. Teekay Tankers Ltd. (TNK) and International Seaways Inc. (INSW) were also up moderately, with gains of 1.90% and 3.28%, respectively. However, some caution was evident as Scorpio Tankers Inc. (STNG) experienced a slight drops of 1.70%. Frontline Plc (FRO) and Euronav NV (EURN) were relatively flat.
Dry bulk stocks showed more consistent gains, with Genco Shipping & Trading Limited (GNK) rising 2.50% and Diana Shipping Inc. (DSX) up 1.12%. Safe Bulkers, Inc. (SB) was also up 0.93%, while Star Bulk Carriers Corp. (SBLK) and Golden Ocean Group Limited (GOGL) were also up slightly.
Container shipping companies saw mixed results. Matson Inc. (MATX) climbed 4.22% and Costamare Inc. (CMRE) gained 2.20%. However, Zim Integrated Shipping Services Ltd. (ZIM) dropped 3.06%. Containership lessors Danaos Corporation (DAC) and Global Ship Lease Inc. (GSL) went in different directions, with DAC down 0.55% and GSL up 1.45%
Investors are cautiously eyeing potential trade tensions, which could impact container volumes.
The offshore oil and gas sector emerged as the day’s biggest winner, with stocks seeing dramatic rises. Noble Corp Plc (NE) surged an impressive 11.26% to $35.38, while Valaris Ltd. (VAL) and Transocean Ltd. (RIG) jumped 6.07% and 4.94% respectively. Seadrill Ltd. (SDRL) and Helix Energy Solutions Group Inc. were also up 6.42% and 7.88%, respectively.
Investors are clearly betting on a resurgence in U.S. offshore oil development, with offshore energy players poised to benefit from Trump’s favorable approach to fossil fuels and potential rollbacks on drilling restrictions.
The cruise industry also rode a wave of optimism, with Carnival Corp. (CCL), Royal Caribbean Group (RCL), and Norwegian Cruise Line Holdings Ltd. (NCLH) up over 7%.
While today’s rally is encouraging, shipping stocks are far from insulated. Global economic variables, including geopolitical tensions and trade relationships, could still lead to choppy waters ahead.
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