2024-06-18 12:00:00 ET
Summary
- The Houthis are improving S/D dynamics in shipping by causing the effective shipping supply to fall.
- Delays in new vessels and frictions with making containers available worsen the imbalance.
- Disruption is supportive for now, but the business is naturally volatile and cyclical. An arrival of capacity or a resolution to the Houthi conflict would turn the cycle.
- Revenue is contracted for the next year, but even at annualised yields, some years will be needed for full payback, and performance could worsen in that time.
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For further details see:
MPC Container Ships: Dynamics Still Good