Marine shipping is a critical component of the global economy, responsible for transporting approximately 80% of the world’s trade by volume. This industry serves as the backbone of international commerce by facilitating the movement of raw materials, manufactured goods, and energy resources across continents. The maritime shipping industry continues to face significant challenges as geopolitical tensions and security threats escalate in key shipping routes. Shipping companies have been forced to reconsider their routes, with many opting to divert vessels around the Cape of Good Hope, significantly increasing fuel costs and delivery times. These disruptions have far-reaching economic consequences, affecting supply chains and global trade.
Years of Challenges
In an interview with CNBC on November 27, Adrian Beciri, CEO of Ducat Maritime said that marine shipping has faced a series of setbacks over the years, including the disruptions caused by the COVID-19 pandemic, hyperinflation, manpower shortages, and the aftermath of conflicts such as the war in Ukraine and tensions in the Middle East, including the blockage of the Suez Canal. These events have compounded the issues within the marine shipping sector and continue to affect the industry.
Beciri highlighted the intrinsic difficulties of the shipping sector, particularly the demanding nature of the work, coupled with economic challenges that have contributed to a labor shortage in the shipping industry, a problem that is often overlooked by the broader market. The CEO also expressed concerns about the potential impact of the president-elect’s announcement of new tariffs on several countries, which could further complicate supply chains and necessitate a shift towards regional or zonal trading blocks. Such a shift could disrupt the historical patterns of international trade, which are based on the comparative advantages of large nations and the principles of free trade. Looking ahead, Beciri emphasized the importance of stable and consistent markets and policies to foster long-term investments and adjustments within the industry. He called for a conducive environment that would allow firms to make significant investments.
Despite the mounting challenges faced by the maritime shipping industry, it remains an indispensable pillar of global trade. With that in context, let’s take a look at the 10 best marine shipping stocks to buy according to analysts.
A large dry bulk vessel navigating a busy seaport, a testament to the success of the company’s marine transportation services.
Our Methodology
To compile our list of the 10 best marine shipping stocks to buy according to analysts, we used Finviz and Yahoo stock screeners to find marine shipping companies with a market cap of over $500 million as of December 24. From that list, we narrowed our choices to 10 stocks that analysts see the most upside to. We also included the number of hedge fund holders for these companies, which was sourced from Insider Monkey’s Hedge Fund database as of Q3 2024. The list is sorted in ascending order of analysts’ average upside potential, as of December 24.
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10 Best Marine Shipping Stocks to Buy According to Analysts
10. Ship Lease, Inc. (NYSE:GSL)
Upside Potential: 42.20%
Number of Hedge Fund Investors: 22
Stock Price as of December 24: $21.80
Global Ship Lease, Inc. (NYSE:GSL) is a leading owner and operator of mid-sized and smaller container ships, serving the global trade industry with a focus on flexibility and efficiency. The company has a modern and efficient fleet that meets the stringent demands of its liner customers and the regulatory requirements of the maritime industry.
Global Ship Lease, Inc. (NYSE:GSL) is leveraging market dynamics and geopolitical factors to secure favorable charter agreements. The ongoing disruptions in the Red Sea and the resulting rerouting of vessels around the Cape of Good Hope have created a tight market for container ships, particularly in the mid-sized and smaller segments where the company operates. By locking in long-term charters at attractive rates, Global Ship Lease, Inc. (NYSE:GSL) has built a significant forward contract cover, which provides visibility into future cash flows and supports the company’s dividend policy.
Global Ship Lease, Inc. (NYSE:GSL) is actively implementing measures to improve the environmental performance of its fleet. This includes retrofitting vessels to enhance fuel-efficiency, installing automated data capture systems to optimize vessel operations, and ensuring compatibility with low-carbon biofuels. These initiatives aim to support the company in meeting the Carbon Intensity Indicator requirements and enhance its competitive position in the market.
9. Safe Bulkers, Inc. (NYSE:SB)
Upside Potential: 48.76%
Number of Hedge Fund Investors: 11
Stock Price as of December 24: $3.63
Safe Bulkers, Inc. (NYSE:SB) is a provider of marine dry bulk transportation services, specializing in the shipment of major bulks such as coal, grain, and iron ore. The company owns a diverse fleet of 46 vessels.
Safe Bulkers, Inc. (NYSE:SB) is committed to maintaining a young and environmentally efficient fleet. The company has already taken delivery of 11 Phase 3 vessels, all built after 2022, and has an additional seven Phase 3 vessels on order, scheduled for delivery over the next two years. These newbuilds are being constructed at prices well below the current market, ensuring cost efficiency. Additionally, 23 vessels in the fleet have undergone environmental upgrades, and 11 are eco-vessels with superior design efficiencies. The company’s strategy to continually modernize its fleet aligns with the increasingly stringent environmental regulations, positioning the company to meet future greenhouse gas targets and remain competitive in the market.
To enhance operational efficiency, Safe Bulkers, Inc. (NYSE:SB) has implemented the DryBMS Standards Managed System, which is designed to optimize vessel performance and reduce greenhouse gas emissions. The company’s average fleet age of 9.8 years is significantly younger than the global average and contributes to lower maintenance costs and higher operational reliability. Safe Bulkers, Inc. (NYSE:SB) also benefits from a diversified charter portfolio, with a significant portion of its Capes charted on long-term contracts, which provides cash flow visibility and stability.
8. Golden Ocean Group Limited (NASDAQ:GOGL)
Upside Potential: 53.73%
Number of Hedge Fund Investors: 18
Stock Price as of December 24: $8.97
Golden Ocean Group Limited (NASDAQ:GOGL) is one of the world’s largest owners and operators of Capesize and Panamax vessels, primarily engaged in the seaborne transportation of dry bulk commodities. The company is the largest listed owner in the Capesize ships segment.
Golden Ocean Group Limited (NASDAQ:GOGL) is positioning itself to capitalize on the long-term growth in tonne-mile demand, particularly in the Capesize segment. The company assumes that new iron ore projects in Guinea and Brazil will replace Australian volumes and result in triple sailing distance to Asia. The Simandou iron ore mine in Guinea, is expected to ramp up production from Q4 2025. Additionally, Brazil’s ongoing expansion projects will add around 50 million tonnes of annual export capacity. This would significantly boost tonne-mile demand for Capesizes. The company’s strong market position in Brazil and fleet composition will allow it to capitalize on these opportunities and ensure sustained growth in earnings and cash flow.
Golden Ocean Group Limited (NASDAQ:GOGL) is also committed to maintaining a modern and efficient fleet to meet the evolving demands of the global shipping market. In Q3, the company sold one older Panamax and an older Newcastlemax vessel at attractive prices, continuing its strategy of fleet renewal. Golden Ocean Group Limited (NASDAQ:GOGL) is also investing in decarbonization and digitalization initiatives to enhance operational efficiency and reduce environmental impact. In Q3, the company allocated $2.4 million to advanced navigation systems, energy-saving technologies, and data analytics tools. These initiatives not only align with the company’s commitment to sustainability but also contribute to cost savings and improved vessel performance.
7. Ardmore Shipping Corporation (NYSE:ASC)
Upside Potential: 56.57%
Number of Hedge Fund Investors: 22
Stock Price as of December 24: $11.88
Ardmore Shipping Corporation (NYSE:ASC) specializes in the transportation of petroleum products and chemicals. The company operates a modern and efficient fleet of MR (Medium Range) and chemical tankers, which serves major oil companies and global trading houses.
Ardmore Shipping Corporation (NYSE:ASC) has made significant investments in efficiency-enhancing technologies and scrubber installations, which have boosted chartering performance and reduced emissions. Looking forward, Ardmore Shipping Corporation (NYSE:ASC) plans to invest approximately $30 million to $35 million in 2025, covering routine dry dockings and additional high-return performance upgrades, including specialized tank coatings. These investments align with upcoming regulations such as the EU Maritime Fuel Regulation.
Ardmore Shipping Corporation (NYSE:ASC) is focusing on a disciplined approach to cost management and deleveraging. The company has successfully reduced its cash breakeven level to the lowest in its history from $16,500 per day to $11,500 per day in Q3, which helped that company to achieve annualized savings of about $50 million. The company remains committed to reinvesting in its fleet while ensuring sustainable value creation. This includes evaluating potential avenues for reinvestment in the existing fleet and the broader market.
Ardmore Shipping Corporation’s (NYSE:ASC) MR and chemical tanker fleets are well-positioned to capitalize on the increasing demand for long-haul ton-miles and allow the company to maximize TCE (Time Charter Equivalent) rates, due to ongoing geopolitical disruptions, particularly as refineries and petrochemical production capacity expand in the East, while closures in the West drive higher ton-miles.
6. Genco Shipping & Trading Limited (NYSE:GNK)
Upside Potential: 66.45%
Number of Hedge Fund Investors: 22
Stock Price as of December 24: $14.04
Genco Shipping & Trading Limited (NYSE:GNK) is a leading dry bulk shipping company, operating a diversified fleet of vessels to transport major bulk commodities such as iron ore, coal, and grains globally.
Genco Shipping & Trading Limited (NYSE:GNK) is actively pursuing a fleet growth and renewal strategy to enhance its earnings power and operational efficiency. In Q3, the company acquired a 2016-built Capesize vessel, marking its third such acquisition in the past 12 months. These strategic acquisitions are part of a broader plan to modernize the fleet by replacing older, less efficient vessels with high-quality, fuel-efficient ships. By doing so, Genco Shipping & Trading Limited (NYSE:GNK) has added premium high-specification assets to the fleet and has realized dry dock capital expenditure savings of $13 million in 2024 and 2025.
Despite recent volatility in the dry bulk market, Genco Shipping & Trading Limited (NYSE:GNK) remains optimistic about the industry’s long-term fundamentals. The company expects to benefit from the growing long-haul ton-mile developments in the iron ore and bauxite trade. Specifically, the Simandou iron ore project in West Africa is on track to begin production in late 2025.
The expansion of bauxite and iron ore production in West Africa, along with incremental production growth from Vale, are positive catalysts for the Capesize segment. These developments are particularly significant given the origins of these export volumes, as these routes have three times the ton-mile impact of Australia to China cargoes.
5. Hafnia Limited (NYSE:HAFN)
Upside Potential: 70.13%
Number of Hedge Fund Investors: 13
Stock Price as of December 24: $5.29
Hafnia Limited (NYSE:HAFN) is one of the world’s leading operators of oil product tankers, offering transportation services for refined petroleum products and chemicals. The company operates one of the largest and most diverse fleets in the industry, with approximately 200 vessels across eight pools, offering a comprehensive range of services including technical management, commercial and chartering services, pool management, and bunker procurement.
Hafnia Limited (NYSE:HAFN) is at the forefront of maritime innovation and sustainability. The company is actively investing in new technologies and sustainable practices to reduce its environmental footprint. A notable example is the recent joint venture with Socatra in France, which will see the delivery of four dual-fuel methanol MR newbuilds in early 2025. These vessels are designed to operate on methanol, a cleaner fuel that significantly reduces emissions, aligning with global efforts to combat climate change.
Moreover, Hafnia Limited (NYSE:HAFN) has made strategic investments in AI and data automation through partnerships with companies such as Complexio. This investment aims to streamline operations, reduce costs, and enhance efficiency in areas such as chartering, ship clearance, and contract negotiation.
4. Navios Maritime Partners L.P. (NYSE:NMM)
Upside Potential: 71.21%
Number of Hedge Fund Investors: 11
Stock Price as of December 24: $44.39
Navios Maritime Partners L.P. (NYSE:NMM) is a global owner and operator of dry bulk and container vessels, providing maritime logistics solutions across the globe. The company operates a versatile fleet of 179 vessels spread across 16 asset classes in three sectors: dry bulk, tanker, and container. Navios Maritime Partners L.P. (NYSE:NMM) caters to both short-term and long-term charter agreements.
Following three new vessel deliveries in Q3 and early Q4, the company has a robust pipeline of 27 additional newbuild vessels scheduled to join the fleet through 2028, representing a significant investment of $1.9 billion. In the containership segment, the company has eight vessels to be delivered, with a total acquisition price of $800 million. These vessels are backed by long-term, creditworthy charters expected to generate approximately $800 million in revenue over an average charter duration of 6.6 years. In the tanker segment, the company has 19 vessels to be delivered, with a total price of approximately $1.1 billion. Fifteen of these vessels have already been chartered out for an average period of five years, expected to generate aggregate contracted revenue of about $700 million.
The company is also actively managing its fleet composition to ensure optimal performance and efficiency. In 2024, the company sold nine older vessels with an average age of 17.5 years for $183 million. Simultaneously, it exercised purchase options on five charter-in Japanese-built vessels with an average age of 8 years for a total price of $142.1 million.
This initiative aims to maximize energy efficiency by maintaining a fleet of vessels with the latest technology, enhancing the company’s operational efficiency, reducing its carbon footprint, and positioning the company to capitalize on long-term charter agreements with creditworthy counterparties.
3. Star Bulk Carriers Corp. (NASDAQ:SBLK)
Upside Potential: 73.38%
Number of Hedge Fund Investors: 24
Stock Price as of December 24: $15.25
Star Bulk Carriers Corp. (NASDAQ:SBLK) is one of the largest dry bulk shipping companies in the world, operating a diverse fleet of vessels that transport commodities such as iron ore, coal, and grain. The company operates a diverse fleet of 156 vessels across all segments, with an average age of 11.9 years.
Star Bulk Carriers Corp. (NASDAQ:SBLK) has demonstrated a strategic approach to growth through a series of acquisitions and fleet optimizations. Since 2018, the company has completed nine mergers and has significantly expanded its fleet by 75% in terms of vessel numbers. These acquisitions, including the recent integration of Eagle Bulk, have increased the company’s market presence as well as enhanced operational synergies and cost efficiencies. The integration of Eagle Bulk has resulted in over $9 million in cost savings, with further potential for savings in operating expenses (OpEx) and dry dock costs.
Star Bulk Carriers Corp. (NASDAQ:SBLK) continues to opportunistically sell older and less efficient vessels, using the proceeds to buy back shares at prices below their net asset value (NAV). This strategy has allowed the company to deleverage, reducing its net debt per vessel by more than 50% and ensuring that the scrap value of its fleet comfortably covers current net debt. Finally, the company owns six debt-free vessels with an aggregate market value of more than $100 million.
2. TORM plc (NASDAQ:TRMD)
Upside Potential: 78.38%
Number of Hedge Fund Investors: 25
Stock Price as of December 24: $19.06
TORM plc (NASDAQ:TRMD) is a leading international marine shipping company specializing in the transportation of petroleum products. The company operates a fleet of approximately 90 product tanker vessels that are configured to move energy and clean petroleum products from refineries.
TORM plc (NASDAQ:TRMD) has been focusing on renewing and expanding its fleet to enhance operational efficiency and capitalize on market opportunities. The company recently acquired eight second-hand MR vessels for $340 million. These vessels, built between 2014 and 2015 at Hyundai Mipo Dockyard, are part of the company’s ongoing program to replenish its fleet. As of Q3, six of these vessels have been delivered, with the remaining two expected to join the fleet by the end of the year.
TORM plc (NASDAQ:TRMD) is leveraging the current market dynamics driven by geopolitical tensions and the reshaping of global trade routes. The company has observed a shift in trade patterns towards longer distances, particularly due to the sanctions against Russia and the Houthi attacks in the Middle East. These factors have contributed to longer voyages and higher ton-mile demand, contributing to a tight supply-demand balance in the product tanker market. The company is well-positioned to benefit from these trends, as its fleet is optimized for long-haul trade.
TORM plc (NASDAQ:TRMD) is also focused on maintaining its strong cash position and a secure debt maturity profile. The company has no major capital expenditure commitments, providing it with the financial flexibility to seize new opportunities as they arise. Furthermore, the company is also committed to sustainability and innovation, ensuring that its operations align with evolving industry standards and environmental regulations.
1. Okeanis Eco Tankers Corp. (NYSE:ECO)
Upside Potential: 115.48%
Number of Hedge Fund Investors: 10
Stock Price as of December 24: $20.42
Okeanis Eco Tankers Corp. (NYSE:ECO) is a leading marine transportation company specializing in the ownership and operation of modern, eco-friendly crude oil tankers. The company boasts a fleet of 14 vessels, built at top-tier shipyards in Korea and Japan, with an average age of just five years. The company’s fleet is uniquely positioned as the youngest and most eco-friendly, with all vessels equipped with scrubbers, to meet environmental regulations.
Okeanis Eco Tankers Corp. (NYSE:ECO) is focusing on operating a young fleet of modern, energy-efficient tankers, which allows the company to potentially secure better charter rates due to their environmental benefits. The company is committed to maintaining a competitive edge by continuously optimizing its fleet and ensuring that its vessels are in top condition. The company has successfully completed a series of drydocks for several of its vessels, including the five-year drydock for Nissos Kythnos, Nissos Rhenia, and Nissos Donoussa.
These drydocks were executed within budget, with costs approximately 10% below internal estimates, and included advanced enhancements such as high-spec tanks and graphene propeller coatings to improve vessel performance and efficiency. The company projects a 10% consumption benefit over a five-year period, with an annual savings of $1 million.
Looking ahead, Okeanis Eco Tankers Corp. (NYSE:ECO) is optimistic about the medium-term fundamentals of the crude oil tanker market, driven by a controlled order book, an aging fleet, and shrinking yard capacity. The company anticipates that the supply of new vessels will struggle to keep pace with the retirement of older, less efficient ships, creating a favorable supply environment. Additionally, the ton-mile effect, where crude oil supply is predominantly sourced from the West and demand is concentrated in the East, supports higher demand for tanker services.
While we acknowledge the potential of Okeanis Eco Tankers Corp. (NYSE:ECO) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ECO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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