Shipping stocks have a habit of defying expectations. At the beginning of 2023, sentiment was ebullient on crude tanker and product tanker shares. The word “supercycle” was bandied about. Global fuel demand was bouncing back from COVID, sanctions on Russia were inflating voyage distances, and the ratio of tanker tonnage on order to tonnage on the water was historically low.
Dry bulk shares were also expected to rise. As with tankers, the dry bulk orderbook was exceptionally slim. China would rebound quickly from COVID, the theory went, ramping up dry bulk demand as the year progressed.
