ZIM - ZIM: Iran Won't Prevent Shipping Rate Collapse
2024-04-16 12:39:41 ET
Summary
- ZIM Integrated Shipping Services is down at $10 despite higher shipping rates due to the inevitable risk of shipping rates collapsing to the 2023 lows again.
- The oversupply of new vessels and the potential for a ceasefire in the Red Sea could lead to a collapse in container shipping rates.
- ZIM's earnings are expected to improve in Q1'24, but the stock is considered dead money for years outside of Red Sea disruptions.
ZIM Integrated Shipping Services Ltd. ( ZIM ) hasn't even faced the ceasefire risk in the Red Sea, especially now with Iran launching missiles on Israel, yet the stock is down at $10. The container shipping company hasn't rallied on the higher shipping rates due to the equally higher shipping costs to avoid the Red Sea. My investment thesis remains ultra Bearish on the stock......
ZIM: Iran Won't Prevent Shipping Rate Collapse