Feb 24 • 09:26 UTC 🇬🇷 Greece Naftemporiki

High freight rates 'take off' listed companies

High freight rates significantly boost cash flows for listed shipping companies, with analysts optimistic about their stock performance.

The global tanker market is experiencing a highly dynamic period as freight rates reach levels that dramatically enhance the cash flows of companies and translate into increased valuations. In this context, seven listed companies of both Greek and international interests stand out for their size, asset quality, and stock market performance, with analysts rating them as a 'buy'. Many analysts describe this freight rate environment as the strongest in the last decade. Notably, Very Large Crude Carriers (VLCCs) are approaching the highest levels since 2020, largely catalyzed by geopolitical developments in the Middle East. Data from the Baltic Exchange indicates that the spot market rental cost for a VLCC has nearly tripled since the beginning of the year, exceeding $165,000 per day. Additionally, there has been a significant increase for Aframax tankers, further underlining the robust performance of the tanker market during this period. This surge in freight rates not only benefits the listed companies but also reflects broader trends in global shipping and the impacts of geopolitical factors on the market. With ongoing conflicts and changes in oil supply routes, companies able to capitalize on these favorable conditions may experience substantial growth, while investors are advised to keep a close watch on the industry for potential long-term gains.

📡 Similar Coverage