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Tuesday, June 15, 2010

What's Happening in the Shipping Market? On Balance, More Good News; Bodes Well for Everyone

We continue to keep tabs on global shipping news because of our interest in broader economic trends and, importantly, our container shipping companies Seaspan (SSW) and Global Ship Lease (GSL). Accordingly, in the spirit of our Don't Fret - Plenty of Good News Out There post from early May, we again share a number of recent headlines from the sector (all subsectors, not merely containers).

From Lloyd's List, highlighting order/purchase activity and volumes:
 From The Journal of Commerce, highlighting traffic:

China Breaks Box Traffic Record 
Container traffic through Chinese ports hit an all-time monthly high of 12.44 million 20-foot equivalent units in May as the nation's foreign trade surged by nearly 50 percent from a year ago..

 Marseilles Fos Container Volume Climbs 16 Percent 
Cargo handled at leading French port Marseilles Fos through May reached 36.6 million metric tons with container throughput contributing a 16 percent increase in both tonnage and 20-foot equivalent units, the Marseilles Fos Port Authority said Monday.

LA-LB Import Volume Grows 18.3 Percent 
Containerized import volume into Southern California ports jumped 18.3 percent in May, as the shipping recovery at Los Angeles and Long Beach picked up speed and retailers pushed more goods out of Asia at a faster pace.

Frankfurt Cargo Hits Record High in May 
Frankfurt airport's cargo traffic hit an all time high in May after climbing nearly 40 percent from a year ago, driven by soaring shipments from Asia.

June Container Imports Seen Rising 15 Percent 
Import cargo volume through the nation's nine busiest container gateways is expected to post a year-to-year increase of 15 percent in June and rise by double digits into this fall, the National Retail Federation and Hackett Associates said in their monthly Global Port Tracker.



To be sure, there also remain some negative headlines scattered in Lloyd's and the JOC. Yet, we continue to see more positive than negative news across the sector. In our view, this bodes well not just for our shipping companies, but for the global economy at large.

Happy investing,

Jeffrey Walkenhorst
CommonStock$ense

Disclosure: long SSW, GSL.

© 2010 Jeffrey Walkenhorst
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