SHIPPING STOCKS HIT HARD AGAIN
The spreading pandemic has further dragged down most of the shipping stocks. The impact of an increasing number of infected people and farreaching lockdowns just starts to be felt in the real economy. The supply shocks with the subsequent demand shocks are moving from East to West. However, countries rebooting their economies begin to feel the negative repercussions of globalization. As their trading partners’ demand drops, there are limited incentives to switch to full capacity utilization yet.
Very slowly, one tries to get a feeling for the effects on the domestic and global economy. Early indicators and evaluation from research institutes do not bode well. Accordingly, financial markets are very cautious and volatile to an extent never experienced before. This, of course, is hitting the shipping stocks as well.