Public shipping companies wane in importance vs private owners
- Scorpio Tankers president Robert Bugbee believes shipping is ‘potentially in crisis’ in terms of its relationship with capital markets
- Short-term holdings of shipping stocks are limited by heightened pressure on hedge funds, while long-only funds remain concerned about sustainable dividends
- Private owners have an easier time weathering shipping cycles because their fleets often span multiple segments; public owners face valuation headwinds when doing so
Will the US-listed shipping sector ever be more than ‘an attractive little niche that is fun to invest in when the market goes up’? If current dynamics persist, the answer is: probably not
