Shipping refers to the transportation of goods and commodities from one place to another, encompassing various modes of transportation such as road, rail, air, and sea. The shipping industry plays a vital role in connecting businesses and consumers across the globe by facilitating the exchange of goods and driving economic growth. From the delivery of online purchases to the transportation of raw materials and finished goods, shipping plays an essential component of modern commerce. According to a report by Fortune Business Insights, the cargo shipping market size was recorded at 11.89 billion tons in 2024 and is expected to reach 14.72 billion tons by 2032, exhibiting a CAGR of 2.7%. The industry is diverse, with companies specializing in different modes of transportation, such as trucking, rail freight, air cargo, and marine shipping, as well as logistics and courier services.
Investing in shipping stocks can be a lucrative opportunity, as the industry is closely tied to consumer spending, economic growth, and global trade. As e-commerce continues to grow, the demand for fast and reliable shipping services is increasing, driving up revenues and profits for shipping companies. Additionally, the rise of just-in-time manufacturing and same-day delivery is creating new opportunities for companies that can provide flexible and efficient logistics solutions. The shipping industry is also experiencing a shift towards digitalization, with the adoption of technologies such as blockchain, artificial intelligence, and the Internet of Things (IoT) to improve efficiency, reduce costs, and enhance customer experience.
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According to a report by Hillebrand Gori, part of DHL Global, the shipping industry has experienced significant growth and evolution in 2024, marked by both opportunities and challenges. The report highlights the persistent growth in demand, driven by strong market activity across key regions, particularly in North and Latin America.
The growth in demand has been met with an expansion in the global container fleet, which is set to increase by a further 5% in 2025. However, the report notes that operational challenges, such as re-routings due to geopolitical risks in regions like the Red Sea, continue to affect capacity and scheduling. Vessels are often rerouted, leading to delays and higher fuel costs. Additionally, labor unrest in countries such as India and on the U.S. East Coast disrupted supply chains. Companies must adapt to these pressures by investing in resilient logistics solutions and closely monitoring geopolitical developments.
The report also notes that ocean freight rates have been volatile in 2024, primarily due to capacity shortages and rerouting costs. While rates may soften in certain trade lanes, others, such as those connecting Oceania and the Atlantic, are expected to remain high. Looking ahead, the report suggests that the shipping industry will continue to experience both opportunities and uncertainties.
The shipping industry plays a vital role in facilitating trade and connecting markets in the global economy. As e-commerce growth accelerates, and the economy stabilizes, shipping companies are well-positioned to capitalize on emerging opportunities. With that in context, let’s take a look at the 10 best shipping stocks to invest in now.
A warehouse filled with boxes of parcels, symbolizing the companies reliable logistics services.
Our Methodology
To compile our list of the 10 best shipping stocks to invest in now, we scanned transportation ETFs plus online rankings to compile an initial list of 25 companies that offer shipping services. We then used Insider Monkey’s Hedge Fund database to rank 10 stocks according to the largest number of hedge fund holders, as of Q3 2024. The list is sorted in ascending order of hedge fund sentiment.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Shipping Stocks To Invest In Now
10. Golar LNG Limited (NASDAQ:GLNG)
Number of Hedge Fund Investors: 39
Golar LNG Limited (NASDAQ:GLNG) is a global energy company that specializes in the shipping and liquefaction of natural gas. The company operates a fleet of LNG carriers and floating liquefied natural gas (FLNG) production units. Golar LNG Limited’s (NASDAQ:GLNG) clients include energy producers and utilities.
Golar LNG Limited (NASDAQ:GLNG) is actively expanding its FLNG fleet to capitalize on the growing demand for efficient and cost-effective gas monetization solutions. The company recently ordered its third FLNG, the Mark II, which is scheduled for delivery by the end of 2027. This new unit will be the first available FLNG for a charter globally, has a liquefaction capacity of 3.5 million tonnes per annum, and is expected to increase the company’s liquefaction capacity by 70%, making it a highly accretive addition to the fleet. Golar LNG Limited (NASDAQ:GLNG) is also exploring the option for a second Mark II FLNG, with a potential delivery in 2028, which will further solidify its position as a leading FLNG provider.
Golar LNG Limited (NASDAQ:GLNG) is focusing on optimizing the utilization of its existing FLNG units. The Hilli, currently operating in Cameroon, is set to transition to a new 20-year charter in Argentina following the expiration of its current contract in July 2026. This redeployment is expected to enhance the vessel’s operational efficiency and generate significant EBITDA. Similarly, the Gimi, which is under a 20-year contract with BP, has entered an accelerated commissioning phase and is expected to start full commercial operations in Q2 2025.
9. J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT)
Number of Hedge Fund Investors: 39
J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) is a leading shipping provider offering a diverse portfolio of solutions, including Intermodal, Dedicated Contract Services, Truckload, and Integrated Capacity Solutions. The company’s client base spans industries such as retail, manufacturing, and consumer goods.
To drive innovation and address core challenges, J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) has partnered with UP.Labs to create the Logistics Venture Lab. This collaboration aims to launch up to six startups over the next three years, focusing on key areas such as brokerage, intermodal, and truckload services. The Logistics Venture Lab will leverage big data, generative artificial intelligence, and emerging technologies to develop transformative solutions. The collaboration also brings together entrepreneurs, product leaders, and technologists to identify and solve issues in logistics and freight transportation. By doing so, J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) aims to repair margins through cost management and strategic capital allocation while delivering high-quality, customer-focused services.
J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) is also advancing sustainability by incorporating alternative-powered vehicles and biogenic fuels into its fleet. The company has added 20 Nikola Tre fuel cell electric vehicles (FCEVs) and is piloting a program with Clean Energy using the new Cummins X15N engine, powered by renewable natural gas (RNG), to cater to clients prioritizing eco-friendly and sustainable services.