The global shipping industry has been hit hard by an oversupply of vessels leading to a drop in day rates and lower revenues and profits for the shippers. One branch of the industry, though, seems to be recovering. Container shipping is rising, and shippers like Seaspan Corp. (NYSE: SSW), Danoas Corp. (NYSE: DAC), and Denmark’s A.P. Moeller-Maersk A/S (OTC: AMKAF), the world’s largest container shipper, should soon be showing signs of recovery.
The familiar 20- and 40-foot shipping containers were imported to the US in November at a rate 5% higher than in November 2010. According to Bloomberg News, the cost of shipping a 40-foot container from China to the US rose to nearly $1,700 in the last week of December.
Danoas shares are up more than 11% in the pre-market, while Seaspan shares are nearly flat.
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