Sea-Freight Stocks Surge as BDI Climbs and Demand for Containers Grow
Stocks operated in sea freight business edged higher as BDI increased, and the temporary closure of Southern Chinese Port caused supply shortage.
The share price of sea freight and logistics stocks surged as Baltic Dry Index (BDI) edged higher by 2.75% to 3,025 points with a 13.4% month-to-date gain.
As of 11:15 local time in Thailand, PSL rose 2.48% to ฿20.70/share.
TTA gained 1.69% to ฿18.10/share.
PRM increased 0.68% to ฿7.45/share.
PORT hiked 2.56% to ฿3.20/share.
NYT advanced 1.32% to ฿4.60/share.
RCL was flat at ฿60.75/share.
Asia Plus Securities (ASPS) recommended “Speculative-Buy” on stocks that operate as bulk carriers (TTA, PSL) after the Baltic Dry Index (BDI) edged higher by 2.75% to 3,025 points with a 13.4% month-to-date gain.
Meanwhile, stocks that operate as container vessels (RCL) were buoyed by higher freight rate as 40-foot container freight rate for Shanghai-Rotterdam rose to a new high on June 11 at 10,522 dollars. ASPS expected the rate to continue increasing as container shortage will remain as a problem. Moreover, the report of the port in Guangdong, China, was temporarily closed due to the Covid-19 being expected to prolong further. The port is the third-largest port in China and the fifth-largest port in the world.