Which ocean shipping stock is a better buy? By StockNews
© Reuters. ZIM vs Seanergy: Which Shipping Stock is a Better Buy?
Even though the advent of infections caused by COVID-19 omicron variants is hampering the recovery of the shipping industry, the demand for shipping has grown rapidly with the reopening of sectors and the increase in demand for goods in the world. Thus, we believe that ZIM Integrated (ZIM) and Seanergy Maritime (NASDAQ 🙂 should benefit. But which of these two titles is the best buy now? Learn more to find out more. Based in Haifa, Israel, ZIM Integrated Shipping Services Ltd. (ZIM) provides international container transport and related services. The company offers maritime transport and logistics services. By comparison, Seanergy Maritime Holdings Corp. (SHIP), based in Athens, Greece, is an international shipping company engaged in the maritime transport of dry bulk cargo, primarily iron ore and coal, worldwide.
Thanks to a large imbalance between supply and demand, most shipping operators have witnessed strong demand. In addition, record freight rates due to strong post-pandemic demand for manufactured goods are helping shipping companies increase their profit margins. Rapid digitization, automation of logistics, and growth of freight forwarding services across all industries are expected to drive the growth of shipping market. According to a report from Market Research Future, the freight shipping market is expected to grow at a CAGR of 5.2% from 2022 to 2030. Hence, ZIM and SHIP are expected to benefit.
Over the past six months, ZIM shares have gained 6.3% to market, while SHIP has generated negative returns. Additionally, ZIM’s 95.9% gains over the past nine months are significantly greater than SHIP’s negative returns.
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