How to Analyze Shipping Stocks: A Guide to Cycles, Rates, and Debt
The global shipping industry is the backbone of international trade, quietly moving over 90% of the world’s goods. From the iron ore that builds our cities to the electronics in our hands, ocean vessels are indispensable. For investors, this sector offers the allure of massive, cyclical returns, but it also carries the risk of spectacular losses.
Unlike analyzing a tech firm or a retail chain, learning how to analyze shipping stocks requires a specialized set of tools and a deep understanding of unique, nonfinancial metrics.
Why is this analysis so difficult? Because shipping is a high stakes, highly leveraged game driven by forces largely outside a company’s control: global commodity demand, geopolitics, and, most…
