Houthi/Yemeni pirates save Israeli and World shipping.
Shipping investors can’t thank them enough.
Ever since the end of Covid, container shipping has been in the doldrums. With no bored people sitting at home any longer ordering online, and Chinese ports not worrying about waves of plague, Container prices have crashed.
Israeli shipping companies like Zim, who had enjoyed share prices $70+ and paid fat dividends, found their share price a tenth of that just a few years later.
The price per container was at or below break even for many operators. Only tanker fleets were doing well with a resurging oil price. Now that that has cooled too, they were also seeing a dent in profitability.
Enter Yemen, saviour of us shipping investor all. Attacking and capturing ships, some Israeli and many not, doesn’t have the effect they think it has.
Let’s look at the shipping industry and how it makes money:
The container leasing companies:
There has been a lot of consolidation of these companies of late and two of the most prominent names were taken private. TGH was bought by Stonepeak for $7.4 Billion, Triton(I was previously a shareholder) sold to Brookfield(I am a shareholder) for $13.3 Billion. These companies lease their containers to…
