Shipping shares drop as inflation, demand concerns weigh

Star Bulk Carriers

22/06/2022 17:31

(Updates stock activity, adds analyst commentary)
    ** Shares of shipping firms fall as S&P Industrials sector
 .SPLRCI  edges down 0.4% and Dow Transports  .DJT  sags 0.9% on
Weds
    ** Logistics giant AP Moeller-Maersk  MAERSKb.CO  said the
breakeven point to ship goods and cargo has risen by more than
25% due to inflationary pressures that will abate but not return
to pre-pandemic levels  urn:newsml:reuters.com:*:nS8N2VS0A0
    ** 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 6.2% to
lowest levels since last Aug. Stock easily biggest drag on DJT
on the session
    ** Dry bulk carriers slide: Eagle Bulk Shipping  EGLE.O 
7.2%, Star Bulk Carriers  SBLK.O  10.0%, Safe Bulkers  SB.N 
4.5%, Diana Shipping  DSX.N  6.1%, Navios Maritime  NMM.N  2.2%,
Seanergy Maritime  SHIP.O  7.7%, Genco Shipping & Trading
 GNK.N  6.0%
    ** Zim Integrated Shipping Services  ZIM.N  falls 5.2%
    ** "Broadly the concern is consumer demand falling which
means that as volumes moderate, shipping rates are likely to
fall," said Stifel analyst Benjamin Nolan
    ** "I suspect container shipping equities are likely to
continue to be highly correlated to the broader market in the
near-term which is being driven by broader macro concerns,"
Nolan added
    ** The Baltic Exchange index  .BADI , which factors in rates
for capesize, panamax and supramax shipping vessels, fell more
than 5% on Weds 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))