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10 Best Marine Shipping Stocks to Buy Now

In this article, we discuss 10 best marine shipping stocks to buy now. If you want to skip our detailed analysis of the marine shipping industry, head directly to 5 Best Marine Shipping Stocks to Buy Now

Ocean transportation is the primary mode of transfer for global trade, with about 90% of traded products transported via sea. Shipping accounts for 2.9% of overall greenhouse emissions. Maritime trade volumes are expected to triple by 2050, as global freight volumes expand due to higher demand. According to Fortune Business Insights’ projections, the worldwide marine vessel industry is expected to experience growth, increasing from $170.75 billion in 2021 to $188.57 billion by 2028. This growth is estimated to occur at a compound annual growth rate (CAGR) of 1.43% during the forecast period of 2021-2028. Among the multiple segments within the industry, the commercial vessel sector is in the lead.

However, Maersk, a major player in the shipping industry, expects tough times ahead after experiencing a remarkably lucrative period. Maersk is the second-largest shipping company globally and it recently revealed a 56% decrease in operating profit for the first quarter, in addition to alerting investors about the possibility of weaker performance throughout the rest of 2023. The shipping giant cited soft consumer demand, declining shipping rates, decreased freight volume, and elevated levels of global inventory for the plummeting results and lackluster guidance. Maersk CEO Vincent Clerc told Bloomberg TV on May 4, 2023: 

“The financial performance that we enjoyed in the last couple of years were very much as a result of the extraordinary circumstances with Covid and some of the disruptions that we saw in the supply chain. As we see this normalization we will see a normalization of prices and a normalization of revenues as a consequence.” 

According to Bloomberg Intelligence, there has been a significant decline in global sea freight rates, with a decrease of approximately 16% this year. Container volume experienced a decline of 5% in February. Notably, the Asia-to-North America routes were particularly affected, witnessing a substantial drop of 31%. BI Senior Industry Analyst Lee Klaskow commented: 

“The weakness is being felt across the supply chain.” 

Don’t Miss: Biggest Shipping Companies in the World Ranked by Tonnage

As shipping is a massive and expanding contributor to emissions, the United Nations maritime organization is looking to reduce pollution caused by international sea vessels by implementing new climate objectives. Expected revisions from the International Maritime Organization (IMO) indicate an upcoming adjustment to the existing objective of reducing shipping emissions by 50% by 2050, based on 2008 levels. However, there are concerns about the willingness of the maritime regulatory body to heed interim targets. IMO Secretary-General Kitack Lim told delegates at the end of June: 

“It is now time to work together on increasing the level of ambition for 2050 and establish the intermediate checkpoints by 2030 and 2040. Do not wait for the last minute at MEPC to make the compromises and find the solutions, a positive outcome from this group is key to a success next week, and for the future work of this Organization.”

On the bright side, according to the Mediterranean Shipping Company (MSC), the largest ocean freight line worldwide, positive indications for the global economy are anticipated, given the high trade demand. However, it is expected to take several months before a significant recovery is observed. While the shipping industry has grappled with multiple demand and supply chain disruptions over the last quarters, MSC CEO Soren Toft expressed optimism regarding the rest of the year for the shipping company. Toft told CNBC on March 1, 2023: 

“I would say we are moderately optimistic that the world will resume again. I think when we come to the middle of this year, we’ll probably start seeing trade move. I would suspect when we get through the second quarter and into the middle of the year, we’ll start to see some positive signs.”

The shipping industry may be facing challenges in the near-term. However, given that 90% of global freight is moved via ocean transportation, it remains one of the most lucrative industries. Some of the best marine shipping stocks to buy include Star Bulk Carriers Corp. (NASDAQ:SBLK), ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), and Global Ship Lease, Inc. (NYSE:GSL). Investors can also check out 15 Most Valuable Shipping Companies in the World, 10 Best Shipping Stocks with Dividends, and 20 Biggest Shipping Companies In The World.

Our Methodology 

We selected the following marine shipping stocks based on the hedge fund sentiment toward each stock. We have assessed the hedge fund sentiment from Insider Monkey’s database of 943 elite hedge funds tracked as of the end of the first quarter of 2023. The list is arranged in ascending order of the number of hedge fund holders in each firm. 

Pixabay/Public Domain

Best Marine Shipping Stocks to Buy Now

10. SFL Corporation Ltd. (NYSE:SFL)

Number of Hedge Fund Holders: 12

SFL Corporation Ltd. (NYSE:SFL) owns and leases maritime and offshore assets. The company’s operations span across different sectors of the maritime, shipping, and offshore industries. This includes transporting oil, dry bulk shipments, chemicals, containers, vehicles, and drilling rigs. On May 15, SFL Corporation Ltd. (NYSE:SFL) reported a Q1 GAAP EPS of $0.05, missing Wall Street consensus by $0.12. On the other hand, the revenue of $173.27 million exceeded market estimates by $5.19 million. The company also paid a $0.24 per share quarterly dividend to shareholders on June 30. 

According to Insider Monkey’s first quarter database, 12 hedge funds held stakes worth $44.5 million in SFL Corporation Ltd. (NYSE:SFL), compared to 20 funds in the prior quarter holding stakes worth $53.8 million. 

Like Star Bulk Carriers Corp. (NASDAQ:SBLK), ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), and Global Ship Lease, Inc. (NYSE:GSL), SFL Corporation Ltd. (NYSE:SFL) is one of the best marine shipping stocks to invest in. 

9. Golden Ocean Group Limited (NASDAQ:GOGL)

Number of Hedge Fund Holders: 12

Golden Ocean Group Limited (NASDAQ:GOGL) is a shipping company that owns and operates a fleet of dry bulk vessels worldwide, transporting bulk commodities, such as ores, coal, grains, and fertilizers. On May 16, Golden Ocean Group Limited (NASDAQ:GOGL) reported a Q1 GAAP EPS of -$0.04, falling short of market consensus by $0.02. However, the revenue of $196.5 million exceeded analysts’ expectations by $88.72 million. 

According to Insider Monkey’s first quarter database, 12 hedge funds held stakes worth $37.1 million in Golden Ocean Group Limited (NASDAQ:GOGL), compared to 15 funds in the prior quarter worth $35.5 million. Todd J. Kantor’s Encompass Capital Advisors is the largest stakeholder of the company, with 1 million shares worth $9.5 million. 

8. Eagle Bulk Shipping Inc. (NYSE:EGLE)

Number of Hedge Fund Holders: 13

Eagle Bulk Shipping Inc. (NYSE:EGLE) provides ocean transportation of dry bulk cargoes globally. The company’s dry bulk vessels transport iron ore, coal, grains, fertilizers, steel products, petcoke, cement, and forest products. It is one of the best marine shipping stocks to invest in. On May 4, Eagle Bulk Shipping Inc. (NYSE:EGLE) reported a Q1 non-GAAP EPS of $0.26 and a revenue of $105.2 million, outperforming Wall Street estimates by $0.07 and $35.98 million, respectively. The company also declared a quarterly dividend of $0.10 per share for the first quarter of 2023.

According to Insider Monkey’s first quarter database, 13 hedge funds were long Eagle Bulk Shipping Inc. (NYSE:EGLE), with collective stakes worth $210.8 million, compared to 12 funds in the prior quarter worth $256.6 million. Howard Marks’ Oaktree Capital Management is the largest stakeholder of the company, with 3.78 million shares worth $172 million. 

7. Shipping & Trading Limited (NYSE:GNK)

Number of Hedge Fund Holders: 14

Shipping & Trading Limited (NYSE:GNK) specializes in the ocean transportation of dry bulk cargoes worldwide. The company’s dry bulk carrier vessels are chartered to trading houses, including commodities traders and government-owned entities. It is one of the best marine shipping stocks to watch. On May 3, Shipping & Trading Limited (NYSE:GNK) reported a Q1 GAAP EPS of $0.06, missing Wall Street estimates by $0.07. The revenue of $94.39 million, however, topped market consensus by $38.42 million. 

According to Insider Monkey’s first quarter database, 14 hedge funds were bullish on Shipping & Trading Limited (NYSE:GNK), with combined stakes worth $46.4 million, compared to 16 funds in the prior quarter worth $54.1 million. Ken Griffin’s Citadel Investment Group is the biggest stakeholder of the company, with 753,447 shares worth $11.8 million. 

6. Danaos Corporation (NYSE:DAC)

Number of Hedge Fund Holders: 16

Danaos Corporation (NYSE:DAC) owns and operates containerships, offering seaborne transportation services in Australia, Asia, Europe, and the United States. On May 15, Danaos Corporation (NYSE:DAC) reported a Q1 non-GAAP EPS of $7.14, exceeding Wall Street estimates by $1.24. The company’s revenue of $243.6 million climbed 6.0% on a year-over-year basis. Danaos Corporation (NYSE:DAC) also paid a $0.75 per share quarterly dividend to shareholders on June 7. 

According to Insider Monkey’s first quarter database, 16 hedge funds were bullish on Danaos Corporation (NYSE:DAC), with collective stakes approximately $94 million. Dmitry Balyasny’s Balyasny Asset Management is the largest stakeholder of the company, with 358,673 shares worth $19.6 million. 

In addition to Star Bulk Carriers Corp. (NASDAQ:SBLK), ZIM Integrated Shipping Services Ltd. (NYSE:ZIM), and Global Ship Lease, Inc. (NYSE:GSL), Danaos Corporation (NYSE:DAC) is one of the premier marine shipping stocks to watch.

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Disclosure: None. 10 Best Marine Shipping Stocks to Buy Now is originally published on Insider Monkey.

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Should I put my money in Artificial Intelligence?

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Click to continue reading…