Shipping shares follow main-trade rates - down

Shipping line share prices have tumbled sharply over the last month and three-month periods, according to an equity research report released by Drewry recently.

This followed 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 period. And that, Drewry asserted, was because of what it termed “a speculative spike in share prices in April” – resulting from rumours of a merger with Cosco. The returns on a one-month basis, said Drewry, were a negative 19%.

And, indeed, there has not been a single carrier that has managed positive returns in June.

To add injury to insult, the companies in sectors tied to the liner trade, such as container leasing and manufacturing, also saw sharp cuts in share prices.