Shipping companies worldwide are witnessing normalizing demand trends in the third quarter thanks to the easing of supply chain bottlenecks that choked up ports at several destinations. Also, weak demand for containerized cargo coupled with excess inventories at warehouses has led to a slowdown in shipments across the globe.
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As per Drewry, a Maritime research and consulting company, a total of 100 canceled sailings have been announced between the weeks of November 7-13 and December 5-11. This represents about a 14% cancellation rate across all major sea routes, including the Transpacific, Transatlantic, and Asia-North Europe and the Mediterranean. Drewry also believes that the stringent COVID-19 norms in China and the rail disruptions in the U.S. could hurt shipping routes between these two nations.
Interestingly, a majority of listed shipping companies that have recently reported their Q3 results echo the same sentiment. They have attributed the normalizing trend to factors such as persistent inflation, sluggish economic growth, war-related uncertainties, and the energy crisis.
In October, the WSJ reported that Trans-Pacific shipping rates have fallen almost 75% from their year-ago highs. Having said that, the rates for cargo and charter still remain above pandemic levels, and shipping companies are trying to draw as much power as they can from the soon-to-die frenzy.
Below is a list of shipping companies that have reported Q3 results:
- Eagle Bulk Shipping – (NASDAQ:EGLE) (DE:E1B1)
- Danaos Corp. – (NYSE:DAC) (DE:DVW1)
- Genco Shipping – (NYSE:GNK) (DE:GNU1)
- AP Moller Maersk – (AMKBY) (DE:DP4H)
- Hapag Lloyd – (DE:HLAG) (GB:0RCG)
- Navios Maritime Partners – (NYSE:NMM) (DE:3PXA)
- Seanergy Maritime – (NASDAQ:SHIP) (DE:RHSR)
- Capital Product – (NASDAQ:CPLP) (DE:7CPA)
Meanwhile, a handful of the listed shipping companies are due to report their third-quarter results in the upcoming week. Investors might want to keep a watch on them and make informed investment decisions with the help of TipRanks Tools.
- ZIM Integrated Shipping Services – (NYSE:ZIM) (DE:2SV)
- Grindrod Shipping – (NASDAQ:GRIN) (DE:1RZ)
- Star Bulk Carriers – (NASDAQ:SBLK) (DE:4FAP)
- Diana Shipping – (NYSE:DSX) (DE:DSZ)
- Euroseas – (NASDAQ:ESEA) (DE:2LE1)
