The latest Drewry Maritime Equity Indices, published for the week ending November 22, 2024, highlight fluctuations across several key segments in the global shipping market. While certain indices showcased gains, others saw steep declines, reflecting a diverse landscape for maritime equities.
Ports and Terminals: A Modest Recovery Amid S&P Growth
The Drewry Port Equity Index (DPEI) managed a slight increase of 0.6% for the week, recovering from prior fluctuations. Global Terminal Operators (GTOs) outperformed their regional counterparts, gaining 1.0%, while Regional Terminal Operators (RTOs) declined by 0.6%. Year-to-date (YTD), the index has risen by an impressive 12.4%, with GTOs leading at 13.0% growth.
By comparison, the S&P 500 surged ahead with a 1.7% weekly increase, outperforming the port sector. The broader index continues to demonstrate resilience, gaining 25.1% YTD, suggesting stronger market confidence in sectors outside the maritime niche.
Container Shipping: Mixed Signals from Regional Stocks
In contrast, the Drewry Container Equity Index fell by 0.8% week-over-week (WoW), driven by declines in stocks with higher exposure to the Chinese market. Despite this dip, the index remains up 19.2% YTD, outperforming many maritime sectors. Notably, the gains in Taiwanese container shipping stocks were not enough to offset the downturn in Chinese-linked equities.
Dry Bulk: Rough Waters Persist
The Drewry Dry Bulk Equity Index recorded a steep decline of 5.4% WoW, driven by falling time charter equivalent (TCE) rates. This segment has struggled throughout 2024, with the index declining 8.1% YTD, a stark contrast to the buoyant 25.1% YTD gain of the S&P 500. The decline emphasizes ongoing challenges in the dry bulk market, including fluctuating demand and oversupply concerns.
Crude Tankers: Navigating Low Demand
The Drewry Crude Tanker Equity Index slipped by 1.2% WoW, continuing a downward trend influenced by weak global oil demand and declining asset prices. Stocks like DHT Holdings and Teekay Tankers, which traded ex-dividend, contributed to the fall. The index has dropped 14.2% YTD, significantly underperforming the Russell 2000‘s 18.7% YTD growth.
LNG Shipping: A Bright Spot in Maritime Markets
Among the sectors, LNG shipping has emerged as a standout performer. The Drewry LNG Shipping Equity Index rose by 2.7% WoW, with stock gains for companies like Golar LNG and Flex LNG. The index has increased 24.8% YTD, reflecting robust demand for liquefied natural gas (LNG) amid rising global energy requirements. Key developments, such as Nakilat’s new LNG shipbuilding orders from QatarEnergy, continue to drive momentum.
LPG Shipping: Modest Weekly Gains Amid YTD Declines
The Drewry LPG Shipping Equity Index ticked up by 0.8% WoW but remains down 17.1% YTD. Despite underperforming other indices, the sector has shown resilience in specific weeks, pointing to potential opportunities for long-term recovery as global demand stabilizes.
Product Tankers: Asset Prices Under Pressure
Finally, the Drewry Product Tanker Equity Index faced a 1.5% WoW decline, reflecting falling asset prices for Medium Range (MR) and LR1 tankers. The index has plummeted 19.5% YTD, highlighting broader concerns about overcapacity and demand challenges in this segment.
source: drewry
