- Shipping Stocks Surge on Red Sea Crisis Boost.
- Wan Hai Joins Large-Cap Ranks in May.
- Evergreen and HMM Cross $10B Milestone in 2024.
A notable surge in investor enthusiasm throughout May has propelled six publicly listed container shipping companies into the large-cap category, with each now boasting a valuation of over $10 billion. This shift comes on the heels of heightened market interest in shipping stocks, driven by the ongoing Red Sea crisis and the windfall gains from tariffs, reports Alphaliner on LinkedIn.
Market Recovery Since 2023 Downturn
Following a downturn in 2023, when only three carriers managed to maintain their large-cap status, shipping stocks have made a strong comeback. The sector has collectively seen a 20% increase in market value over the past year, largely fueled by persistent geopolitical tensions and ongoing supply chain issues.
Wan Hai Joins the Billion-Dollar Club
Taiwan’s Wan Hai Lines has recently joined the ranks, achieving a market valuation of $10.05 billion in mid-May — a milestone reminiscent of the booming years of 2021 and 2022.
Evergreen and HMM Among Earlier Joiners
Evergreen Line and HMM hit the $10 billion mark earlier, in early and late 2024, respectively. Meanwhile, ZIM Integrated Shipping Services from Israel experienced a significant rally in May, surpassing the $2 billion threshold and re-entering the mid-cap category.
Top 3 Carriers Rival Consumer Giants
The top three carriers by market capitalisation — COSCO SHIPPING, A.P. Moller-Maersk, and Hapag-Lloyd AG, now boast valuations that rival well-known brands like Delta Air Lines, Kraft Heinz, and Kellogg’s, highlighting the increasing importance of shipping in the global economy.
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Source: Alphaliner on LinkedIn
