Shipping shares drop as inflation, costs weigh

Safe Bulkers

22/06/2022 16:48

** Shares of shipping firms fall on Weds as inflation
continues to exact a toll
    ** Logistics giant AP Moeller-Maersk  MAERSKb.CO  said the
breakeven point to ship goods and cargo has risen by more than
25%  urn:newsml:reuters.com:*:nS8N2VS0A0
    ** "There will be a world where the disruptions, congestions
and the inflation we have seen in air and ocean will abate,"
Vincent Clerc, chief exec of Ocean and Logistics said
    ** "But the regression to the mean is not the regression to
the mean that we had prior to COVID, it's a different mean. The
costs that we have to produce have significantly increased," he
said
    ** Maersk's shares lost 2.9% on Weds. Last Thurs, its stock
fell ~7% on growing U.S. recession fears  urn:newsml:reuters.com:*:nL8N2Y3348
    ** Ocean transport/logistics co Matson  MATX.N  down 5.6% to
lowest levels since last Aug. Stock easily biggest drag on Dow
Transports  .DJT  on the session
    ** Dry bulk carriers slide: Eagle Bulk Shipping  EGLE.O 
6.3%, Star Bulk Carriers  SBLK.O  8.7%, Safe Bulkers  SB.N 
3.6%, Diana Shipping  DSX.N  5.5%, Navios Maritime  NMM.N  2.2%,
Seanergy Maritime  SHIP.O  7.8%, Genco Shipping & Trading
 GNK.N  5.2%
    ** Zim Integrated Shipping Services  ZIM.N  falls 5.0%
    ** Meanwhile, the Baltic Exchange index  .BADI , which
factors in rates for capesize, panamax and supramax shipping
vessels, fell more than 5% as rates dip  urn:newsml:reuters.com:*:nL4N2Y92MM

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))