An equity research report released by Drewry recently shows the sharp decline in global carriers’ share prices over the past one-month and three-month period.
This dip in share prices follows news that global carriers were at risk of bankruptcy, with many shipping lines having to sell their assets.
Of the 12 listed carriers that the researchers have been tracking, only CSCL managed a positive return of 18% on a three-month basis.
Drewry believe this is the result of a speculative spike in share prices in April, 2015 on the news of its merger with COSCO, as the returns on a one-month basis were a negative 19%.
Under Drewry’s coverage, there has not been a single carrier that has managed positive returns in June, 2015. The companies in sectors tied to the liner trade, such as container leasing and manufacturing, also saw sharp cuts in share prices.
(Source: Drewry / Bloomberg / DMER)
According to the report: “All three Japanese operators – MOL, NYK and K – line – provided disappointing returns in June, 2015, ranging from a negative 6% to negative 9%. Even three-month returns for all the operators are in the negative zone. However, on YTD [year-to-date] basis, MOL recorded 9% positive returns.
The total price of shipping debt was said to be around US$80 billion back in May, 2015, as ship orders continued to pick up the pace.
The most recent example would be Maersk Line, having ordered nine 14,000 TEU ships recently, with the option of adding another eight for delivery in 2017.
Drewry believe the market has not reacted positively to Maersk's series of vessel ordering over the past few months amid record low freight rates and capacity cuts.
Among all stock prices, Drewry found that those of Yang Ming and Evergreen fell the most in 2015.