In this article, we will discuss the 11 Best Marine Shipping Stocks to Invest in Now.
According to Dr. Shashi Kumar of the US Naval Institute, geopolitical developments tend to have a greater impact on the highly volatile shipping market compared to market forces. Since the 2007–08 financial crisis, the broader global shipping market continues to face a series of new challenges. However, the challenging conditions this industry faced in 2024 were unmatched over the past decade and a half, says Kumar. The year’s challenging conditions included the prolonged war in Ukraine, wanton Houthi attacks in the Red Sea as well as increased tensions in the South China Sea. Kumar also noted that container ships decided to avoid the Suez Canal and chose to transport goods around southern Africa, which increased transit time and greenhouse gas emissions. Despite this, the owners of these container ships saw a profitable year.
What Lies Ahead for Marine Vessels Market?
The marine vessels market is expected to reach US$133.63 billion by 2030 from US$111.10 billion in 2024, as per Research and Markets. While global trade continues to fuel the demand for different types of ships, the military navy growth has also been lending support to expand the market. Notably, the requirement for larger and more versatile vessels stems from the demand for efficient transportation of goods. Also, increasing passenger and tourism needs continue to fuel fleet expansion and technology upgrades.
The firm believes that several cruise lines have been adding more ships to cater to the needs of travelers focusing on unique experiences. Overall, the strategic fleet renewal remains critical for market improvement. New and fuel-efficient vessels have been supporting to meet environmental standards and lower costs, says Research and Markets. The transition towards sustainable shipping practices continues to become more critical to obey the international rules targeting reduced emissions.
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Cargo Vessels Segment Is Expected to Lead Growth
Research and Markets believes that cargo vessels continue to become a critical part of commercial shipping. Such vessels tend to play a vital role in global trade by transporting numerous goods across the seas. With the demand for faster and more reliable shipping increasing, the broader industry remains focused on adopting new technologies. Notably, modern navigation systems, eco-friendly fuels, and automation tend to enhance efficiency, improve safety, and reduce the environmental impact. Therefore, as global trade has been expanding, cargo vessels remain critical when it comes to international commerce and economic growth.
With this in mind, let us now have a look at the 11 Best Marine Shipping Stocks to Invest in Now.
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Our Methodology
To list the 11 Best Marine Shipping Stocks to Invest in Now, we used a screener to shortlist the companies catering to the broader marine shipping industry. Next, we mentioned the hedge fund sentiments around each stock, as of Q4 2024. Finally, the stocks were arranged in ascending order of their hedge fund sentiments.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Best Marine Shipping Stocks to Invest in Now
11. Ardmore Shipping Corporation (NYSE:ASC)
Number of Hedge Fund Holders: 13
Ardmore Shipping Corporation (NYSE:ASC) is engaged in the seaborne transportation of petroleum products and chemicals. The global oil demand accelerated in Q4 2024, and further strong growth is expected in 2025. Notably, the lower refining margins and uncertainty in broader global markets resulted in a general risk-off approach. There were some long-haul cargos, mainly on east to west runs, and broader activity remained somewhat muted. However, things have now begun to pick up.
The market players are starting to take positions. Ardmore Shipping Corporation (NYSE:ASC) believes that trading firms have been arbitraging shifting cargo flows, time charter activity continues to rise, and refining margins have jumped. Collectively, these measures are expected to result in a boost to tonne-mile demand. Ardmore Shipping Corporation (NYSE:ASC) anticipates steady growth in underlying demand for refined oil products as well as expanding the biofuel trades, which would support product tanker demand, while the MR fleet ages to its oldest level in decades.
Furthermore, the combination of regulatory uncertainty, expansion of sanctions, and widespread geopolitical instability continue to underscore the value of cargo and destination flexibility that remains the hallmark of MR product tankers and chemical tankers. Aristotle Capital Boston, LLC, an investment advisor, released its Q4 2024 investor letter. Here is what the fund said:
“Ardmore Shipping Corporation (NYSE:ASC), a product and chemical transportation company focused on modern mid-sized vessels, experienced headwinds due to a combination of factors including a weakening tanker market with lower spot rates, potential concerns about geopolitical instability impacting shipping routes, and a general market downturn affecting the shipping industry. We maintain a position, as we believe the company continues to operate from a position of strength, driven by recent shareholder-friendly capital allocation decisions, strong operating performance, and a favorable industry supply-demand backdrop.”
10. Danaos Corporation (NYSE:DAC)
Number of Hedge Fund Holders: 13
Danaos Corporation (NYSE:DAC) owns and operates containerships and drybulk vessels. In December 2024, the company added two 9,200 TEU newbuilding containerships to its order book, which have expected deliveries in 2027. The company took delivery of 6 newbuilding containerships in 2024 and 1 in January 2025. Danaos Corporation (NYSE:DAC)’s remaining orderbook has a further 15 newbuilding containership vessels with an aggregate capacity of 128,220 TEU with anticipated deliveries of 1 vessel in 2025, 3 vessels in 2026, 9 vessels in 2027, and 2 vessels in 2028.
Danaos Corporation (NYSE:DAC) remains highly insulated from the near-term market uncertainty, given its 97% coverage for 2025 and 79% for 2026 at healthy rates, protecting it from market volatility. The company’s charter backlog of $3.4 billion offers it a certainty of income and firepower to explore accretive investments. Danaos Corporation (NYSE:DAC) has chartered 13 out of its 15 newbuildings for 5 years and has managed to arrange a new $850 million facility from a bank syndicate focused on fully covering the funding of all vessels on order. The company remains focused on maintaining a strong financial position, securing long-term contracts for the vessels coming off charter, and making investments in modern, fuel-efficient container vessels.
9. SFL Corporation Ltd. (NYSE:SFL)
Number of Hedge Fund Holders: 14
SFL Corporation Ltd. (NYSE:SFL) is an international ship owning and chartering company. The company was able to add several new vessels and over $2 billion fixed-rate charter backlog in 2024. Over the last decade, the company has transformed from a vessel financing provider to a maritime infrastructure company. As of December 31, 2024, the estimated fixed-rate charter backlog from SFL Corporation Ltd. (NYSE:SFL)’s fleet of 80 wholly or partly owned vessels and newbuildings under construction was ~$4.3 billion, with a weighted remaining charter term of 6.7 years.
Notably, ~67% of the fixed rate charter backlog is to customers having an investment grade credit rating. During Q4 2024, the company’s fleet generated a gross charter hire of $231.7 million, which includes $2.6 million of profit share. The owning of diversified portfolio of vessels on long-term charters offers an increased earnings visibility, lower residual value risk as well as lower concentration risk to an individual shipping market or particular customer. Furthermore, it allows SFL Corporation Ltd. (NYSE:SFL) to continuously reinvest in new assets and provide attractive dividends.
The company expects that newbuild yard prices for standard vessels rose by 30-40% over the last few years because of inflationary pressure in international commodity prices and labor markets. This, together with a higher focus on premium vessel operations and fuel efficiency, can have implications for future shipping rates and the value of the vessels after the existing charter periods. SFL Corporation Ltd. (NYSE:SFL) opines that owning a fleet of modern high-quality maritime assets and continuous efforts to optimize the vessels’ performance is important to capture this value.