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UNCERTAINTY CASTS SOME SHADOWS ON MARITIME MARKETS
Shipping stocks continued consolidation for a second week. The Dow Jones Global Shipping Index lost another 1.5% w-o-w. Especially bulker companies suffered from a weakening interest in the sector. Furthermore, the political scene in Washington is getting more and more difficult. Firstly, due to the internal affairs and secondly due to the US-Sino trade conflict which seems far away from an agreement.
Crude tankers enjoyed a hefty jump on Friday when the US administration declared sanctions on a handful of Chinese tanker owners. This caused a reshuffling of cargo and a sudden lack of tonnage. Tradewinds reported that also TK LNG is affected because of their 50/50 joint venture on six Ice class LNG carriers.
Other LNG and LPG carrier owners were able to gain nearly 2%. The LPG sector is on its way to a new annual record TCE rate which supports current stock prices. Some research analysts have recently raised their price targets and we expect others to follow.
We included a new graph in our weekly newsletter, showing the performance of our trading strategies over the last twelve months. We were able to gain 20% y-o-y in both strategies, whereas the Dow Jones Global Shipping Index lost nearly 10% in the same period.
Our maritime sentiment index lost some ground in the last week, mainly driven by the lower charter rates in the bulk markets and the underperformance of the Dow Jones Global Shipping Index against the MSCI World index.
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