Despite the resurgence of COVID-19 cases, a severe supply-demand imbalance that is being exacerbated by continuing global supply chain disruptions, has been beneficial for most shipping operators. Investors’ interest in shipping stocks is evident in the Breakwave Dry Bulk Shipping ETF’s (BDRY) 90.22% gains over the past year versus the SPDR S&P 500 Trust ETF’s (SPY) 21.5% returns.
Furthermore, record freight rates due to a shortage of containerships, congestion in ports, and international post-pandemic demand for manufactured goods are helping shipping companies increase their profit margins. According to a report by Grand View Research, the global shipping container market is expected to grow at a 12% CAGR through 2028.
