Shipping stocks guarantee the better transportation service
You should not be confused with the word “shipping” when considering various stocks in the modern transportation industry as it includes all the ways of the cargo delivery, including trucks, trains, airplanes and finally ships themselves. Moreover, most ship stocks companies also provide a storage service. Therefore, when speaking about a cargo delivery, it’s crucial to know which companies are the best in this sphere across the world.
The best performance shipper stocks
Here we will consider the best companies from a customer’s point of view.
- Nordic American Tankers Ltd. This shipping company is widely known in the U.S. with its oil tankers providing service across the country for many successful years. It is also considered to be one of the best value shipping companies among owners and shareholders.
- Matson Inc. is indeed a universal stock shipping company. Variety of services and transportation provided (including international routes) is making Matson one of the most favorite among the Americans brands.
- Costamare Inc., a Monaco company which grew to one of the most famous worldwide shipping providers. Of course, still we are speaking about transportation by ships which allows us to cover enormous distances and deliver supplies throughout the world, including North America.
The list of top shipping stocks is being updated on a regular basis, but among the companies that are quite often included in Top 10 we can underline DHT Holdings Inc., Euronav, Hoegh LNG Partners LP, Overseas Shipholding Group, Teekay LNG Partners LP, International Seaways Inc., Capital Product Partners LP and some others. As we can see, nowadays a significant part of shipping companies still involves seaside transportation. But supplies delivery by land cannot be either underestimated.
Developing of the sphere
Besides a great competition, more and more companies are taking their own niche in the shipping stock industry. A brilliant example of it is KNOT Offshore Partners LP, keeping a great number of shuttle tankers which can transport the most massive and oversized items.
Another international example of a fast-growing shipped stock is a Greek company Star Bulk Carriers Corp., which exclusively operates dry bulk carrier vessels. This type of transportation allows it to deal with such necessary products as grain and coal, spreading it across the world.
There are a few features that directly influence a profitability and a potential of any transportation stock:
- Fuel cost. That is a truly essential part of any shipping stock price. Considering the difference in cost of different types of fuel (diesel, jet fuel, electricity and natural gas) a company can decide which transportation is better fit its needs and logistics requirements;
- Competition. Having distinguished transportation options, dealing with hard to reach regions, delivering unique supplies – there are just a few examples how any new shipping stock can stand out on the modern marketplace. Otherwise it will be quite difficult and costly to compete with experienced companies which already have their permanent clients and no need for advertisement;
- Economic situation. Like any industry, transportation fully depends on the current economic strength of the country and even of the whole world. People will not be able to spend a lot of money for the delivery service as well as the investors will not afford to add new funds for the development. These changes cannot be controlled but it’s highly recommended for each shipping stock company to have some extra resources to survive;
- Debt. This is almost unavoidable for any transportation company operating. Costs of new trucks, ships or any other necessary equipment can be too high to deal with on a regular basis. That is why a long-term debt became such a useful and common tool in this sphere. But like with any debts the management should take smart and rational decisions in any particular case.
Shipping stocks are the vital part of the transportation industry, including not only delivering but also logistics and dealing with third-party offerings. Nowadays this chain is covering almost every region making it possible to supply products across the world.