FREIGHT RATES SOAR 2X: ADVANTAGE TO GE SHIPPING

The shipping industry is one of the few industries that have benefited from the current crisis in the Middle East. Spot shipping freight rates have skyrocketed in the key tanker segment by 2x on a y-o-y basis in the Mar26 quarter, depending on the type of vessel. Tanker vessels are used to transport a range of petroleum and allied products. The current stand-off in the key shipping route, Strait of Hormuz, has led to ships taking a longer route to complete their journey A leading shipping company like

typically utilise 70-75% of it's fleet capacity for transporting petroleum products via tanker vessels. In addition, it utilises a combinatio of short-term and long-term contracts with customers to maximise freight earnings. The company has pointed out for crude carriers the average freight rate has nearly doubled from a year earlier. The company's stock price is trading near it's all time high levels thereby indicating a strong demand in the company's shares.