GLNG - BofA's shipping preview sees 'tale of two halves' higher targets for 2021

A year-ahead look at marine transport from BofA envisions a "tale of two halves" for crude and product tankers, while tight container markets could "unwind" and normalize in the second half as well. Carrier stocks in 2020 fell 34% from 2019 - the sector's sixth underperformance of the S&P 500 in seven years, BofA notes, and shipping stocks have underperformed the market for seven of the last 11 years (by 800 basis points on average). But last year's shortfall was the biggest in at least 25 years, it notes. Shipping's 2020 started with the onset of new regulations mandating carriers burn cleaner Very Low Sulphur Fuel Oil if they didn't have installed scrubbers; "This set the stage for unprecedented industry disruption, capacity dislocation, and thus rising industry rates." That came before "shipping's largest recorded oil demand disruption event" - the global onset of COVID-19, which spurred an initial spike in

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BofA's shipping preview sees 'tale of two halves,' higher targets for 2021