The maritime and shipping sectors have had a mixed performance for the week ending June 28, 2024. The Drewry Port Equity Index (DPEI) showed a solid increase of 2.7% compared to the previous week, echoing the broader market’s volatility as the S&P 500 experienced a slight decline of 0.1%. In an interesting twist, Global Terminal Operators (GTOs) surged by 5.0%, while Regional Terminal Operators (RTOs) slipped by 1.3%. Year-to-date (YTD), the DPEI has risen by 12.6%, outpacing the S&P 500’s gain of 14.5%, with GTOs soaring 20.7% and RTOs staying relatively flat.
In the dry bulk shipping segment, the Drewry Dry Bulk Equity Index increased modestly by 0.4% for the week, maintaining its positive trajectory with a 16.9% YTD gain. This performance, albeit solid, lags behind the broader S&P 500’s 14.5% rise. The uptick in the dry bulk sector can be attributed to higher-than-expected Time Charter Equivalent (TCE) rates, which have provided a steady boost.
Container shipping faced a slight setback with the Drewry Container Equity Index dropping by 0.8% for the week. This decline reflects the sector’s adjustment to pre-pandemic levels of activity and heightened caution around valuations. Despite this weekly drop, the World Container Index (WCI) increased by 3.9% WoW, suggesting some underlying strength in the market.
Crude tanker shipping showed robust performance with the Drewry Crude Tanker Index climbing by 4.8% for the week, driven by rising rates for Medium Range (MR) tankers. This impressive weekly surge contributes to a 32.8% YTD increase, significantly outpacing the Russell 2000’s modest 1.0% rise over the same period.
Product tanker shipping mirrored the crude tanker sector’s strength, with the Drewry Product Tanker Index also up by 4.8% for the week. The product tanker segment has seen a stellar 32.8% YTD growth, buoyed by strong market fundamentals and rising demand.
The LNG shipping sector saw the most significant weekly gain, with the Drewry LNG Shipping Equity Index jumping by 7.1%. This surge was primarily driven by strong performances from Nakilat and Golar LNG stocks, with Nakilat benefiting from new LNG shipbuilding orders from QatarEnergy. This has resulted in an impressive 26.8% YTD increase for the LNG index, outstripping the S&P 500’s rise.
Lastly, the LPG shipping sector also posted solid gains, with the Drewry LPG Shipping Equity Index increasing by 2.7% for the week. This performance highlights a robust YTD increase of 16.2%, contrasting sharply with the Russell 2000’s 1.0% decline over the same period.
These varied performances across different segments of the maritime and shipping industry illustrate a complex landscape. The interplay of global economic factors, supply chain dynamics, and sector-specific trends continues to shape the fortunes of these critical sectors.
Source: Drewry
