As the year 2023 comes to a close, the economy continues to thrive with no signs of a recession in sight, and the S&P 500 index is on the verge of reaching a new all-time high. This has been a particularly strong year for ocean shipping stocks, outperforming the broader market.
FreightWaves recently ranked the performance of shipping stocks in 2023 based on the change in adjusted closing prices from December 30, 2022 to the present year. The results were compared to the performance of the S&P 500 index ETF.
The top 5 shipping stock gains of the year were as follows:
1. Dorian LPG (NYSE: LPG) saw a remarkable surge in adjusted share price by 184% throughout the year. The company, based in Connecticut, specializes in transporting liquefied petroleum gas in very large gas carriers.
2. Frontline (NYSE: FRO), a tanker giant founded by shipping tycoon John Fredriksen, saw its shares double in value, rising by 97% in 2023.
3. Overseas Shipholding Group (NYSE: OSG) experienced a rise of 90% in share price, despite being a lesser-known player in the shipping equity market.
4. Euroseas (NASDAQ: ESEA), founded by Aristides Pittas of Greece, saw a 90% increase in share price. The company operates as a container-ship lessor.
5. Matson (NYSE: MATX), operating in protected Jones Act trades and China-West Coast international trade, witnessed an 80% increase in share price, hitting a new 52-week high.
In terms of tanker stocks, sentiment was optimistic at the start of the year with hopes of a new “super cycle,” but only a few stocks surpassed expectations. Product tanker owners struggled, with only a few, like Frontline and OSG, seeing significant gains.
Container-ship lessor stocks continued to report strong profits in 2023, with companies benefiting from relatively high lease rates. Euroseas saw the highest increase in share price among lessors, while Costamare had the smallest gain, likely due to exposure to the dry bulk sector.
Dry bulk stocks, heavily influenced by the Chinese economy, experienced mixed results in 2023. Pangaea Logistics emerged as the best-performing U.S.-listed dry bulk stock, with a 68% increase in share price. Seanergy and Diana Shipping also saw notable changes in share price throughout the year.
Overall, U.S.-listed shipping stocks saw an average increase of 19% in 2023, outpacing the S&P 500 ETF. Despite challenges in some sectors, the shipping industry as a whole has continued to perform well throughout the year.
