What US-China Trade Progress Means For Shipping Stocks

Dec 18, 2019 at 08:44 AM CST
The trade war launched by U.S. President Donald Trump has precipitated years of negative sentiment for ocean-shipping stocks. Finally, some relief is in sight. The new phase-one agreement halts new tariffs that were to go into effect on Dec. 15 and marks a first step toward getting U.S.-China trade flows back to levels seen prior to Trump’s election. Trade tensions have been an ever-present overhang on the performance of U.S.-listed shipping stocks because so much of ocean-shipping demand is contingent on Chinese imports and exports of commodities and containerized goods. What’s bad for China’s economy is bad for shipping stocks.

Dec 18, 2019 at 08:44 AM CST

The trade war launched by U.S. President Donald Trump has precipitated years of negative sentiment for ocean-shipping stocks. Finally, some relief is in sight. The new phase-one agreement halts new tariffs that were to go into effect on Dec. 15 and marks a first step toward getting U.S.-China trade flows back to levels seen prior to Trump’s election. Trade tensions have been an ever-present overhang on the performance of U.S.-listed shipping stocks because so much of ocean-shipping demand is contingent on Chinese imports and exports of commodities and containerized goods. What’s bad for China’s economy is bad for shipping stocks.