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.
8. United Parcel Service, Inc. (NYSE:UPS)
Number of Hedge Fund Investors: 43
United Parcel Service, Inc. (NYSE:UPS) is a global leader in logistics, offering a wide range of services including package and freight shipping, advanced technology solutions, and specialized shipping services in healthcare, e-commerce, and supply chain management. The company has a presence in over 220 countries and territories and is known for handling over 25 million packages and documents each day.
United Parcel Service, Inc. (NYSE:UPS) is focusing on the expansion of its healthcare logistics capabilities and aims to become a leader in healthcare logistics provider globally. In January 2025, the company completed the acquisition of Frigo-Trans and its sister company BPL. This acquisition significantly enhances United Parcel Service, Inc.’s (NYSE:UPS) end-to-end temperature-controlled logistics solutions, particularly in Europe. Frigo-Trans offers pan-European cold chain transportation and temperature-controlled warehousing capabilities, ranging from cryopreservation (-196°C) to ambient (+15° to +25°C). BPL, on the other hand, brings time-critical freight forwarding capabilities which will further strengthen United Parcel Service, Inc.’s (NYSE:UPS) ability to provide comprehensive and reliable healthcare logistics services.
In addition to healthcare, United Parcel Service, Inc. (NYSE:UPS) has also been actively expanding its e-commerce and reverse logistics capabilities. In October 2023, the company acquired Happy Returns, a reverse logistics company that specializes in returns management for e-commerce retailers. This acquisition has enabled United Parcel Service, Inc. (NYSE:UPS) to offer more efficient and customer-friendly return processes, reduce costs, and improve the overall shopping experience for consumers.
7. Canadian National Railway Company (NYSE:CNI)
Number of Hedge Fund Investors: 44
Canadian National Railway Company (NYSE:CNI) is a major shipping railway operator in North America, connecting ports and markets across Canada and the United States. The company transports a wide range of goods, including consumer products, automotive parts, and energy products. Canadian National Railway Company (NYSE:CNI) serves industries such as agriculture, retail, and manufacturing.
Canadian National Railway Company (NYSE:CNI) is prioritizing growth in its intermodal business, particularly through Western Gateways, by leveraging its end-to-end supply chain efficiency to attract increased traffic. The company is making strategic investments in technology to enhance maintenance scheduling, reduce dwell times, and improve overall reliability. Canadian National Railway Company (NYSE:CNI) is also expanding terminal capacity and infrastructure, including the Greater Toronto Area fuel terminal and plant capacity on both sides of the border. While the domestic intermodal market remains soft, growth is expected in the coming quarters, driven by robust international volumes, supported by high demand for Canadian and US grain.
Additionally, the Canadian National Railway Company (NYSE:CNI) is implementing measures to optimize resources, such as halting hiring in surplus areas and furloughing non-essential personnel and locomotives. These actions aim to maintain operational fluidity and reduce costs while ensuring the company is prepared to scale operations quickly as volumes recover.
6. Norfolk Southern Corporation (NYSE:NSC)
Number of Hedge Fund Investors: 47
Norfolk Southern Corporation (NYSE:NSC) is a premier transportation company specializing in rail freight services across the eastern United States. The company offers intermodal shipping, industrial product transport, and automotive logistics to a broad range of clients, including manufacturers, distributors, and retailers. Norfolk Southern Corporation’s (NYSE:NSC) expansive rail network connects major manufacturing and consumer markets, enabling clients to transport goods efficiently and sustainably.
Norfolk Southern Corporation (NYSE:NSC) is committed to diversifying its revenue streams and expanding into new markets. The company is collaborating closely with customers and partners to develop innovative solutions and service offerings that address their evolving needs, particularly in the merchandise segment, which continues to grow despite challenges in industries such as automotive and metals. Norfolk Southern Corporation (NYSE:NSC) aims to achieve an operating ratio of below 60% within the next three to four years through a disciplined, data-driven management approach that prioritizes cost reduction, service reliability, and optimal asset utilization. Furthermore, the company is focusing on improving fuel efficiency, which has already contributed to a better-adjusted operating ratio.
Norfolk Southern Corporation (NYSE:NSC) is investing in advanced technologies and infrastructure, which are expected to drive robust demand, particularly in the international and domestic intermodal markets.
5. XPO, Inc. (NYSE:XPO)
Number of Hedge Fund Investors: 48
XPO, Inc. (NYSE:XPO) is a provider of freight transportation services, based in Greenwich, Connecticut. The company focuses on two core business segments: North American Less-Than-Truckload (LTL) and European Transportation. XPO, Inc. (NYSE:XPO) serves a diverse range of industries, including retail, e-commerce, manufacturing, food and beverage, and consumer goods.
XPO, Inc. (NYSE:XPO) is making significant investments in its network to drive long-term growth and enhance operational efficiency. Over the past three years, the company has added nearly 15,000 trailers and over 4,000 tractors while opening 21 of the 28 new service centers acquired in December 2023. These efforts aim to build density, improve service, and reduce costs. By increasing the proportion of in-sourced linehaul miles, XPO, Inc. (NYSE:XPO) plans to lower its dependence on third-party carriers. Furthermore, the company is emphasizing the management of labor costs, fleet maintenance expenses, and other variable costs.
XPO, Inc. (NYSE:XPO) has launched several high-margin accessorial services, including retail store rollouts, Must Arrive By Date, and Trade Show services, which are increasingly becoming popular among customers. These services not only boost revenue but also enhance customer loyalty. XPO, Inc. (NYSE:XPO) aims to increase accessorial revenue to 15% of total revenue within the next five years.
4. CSX Corporation (NASDAQ:CSX)
Number of Hedge Fund Investors: 51
CSX Corporation (NASDAQ:CSX) is a prominent shipping company in North America that offers rail-based shipping and freight services, intermodal transportation, bulk tank trucking, and rail-to-truck transload services. The company operates across a network that spans 23 states and the District of Columbia, CSX Corporation (NASDAQ:CSX) serves a wide range of industries, including chemicals, automotive, metals, forest products, and coal.
CSX Corporation (NASDAQ:CSX) is focused on enhancing its operational efficiency and service reliability. The company is utilizing advanced technologies such as predictive maintenance and automated train operations to boost efficiency and reduce operational costs. Additionally, the company is employing real-time data analytics to optimize its network, minimize transit times, and improve on-time performance. By delivering a reliable service product, CSX Corporation (NASDAQ:CSX) aims to seize growth opportunities, particularly in the merchandise and intermodal segments, as customers increasingly seek dependable and cost-effective transportation solutions. The sales and marketing team at CSX Corporation (NASDAQ:CSX) is also emphasizing the conversion of truck volumes to rail, with significant growth observed in the chemicals, food, and forest products sectors within the merchandise segment.
CSX Corporation (NASDAQ:CSX) is also prioritizing fuel efficiency, which not only helps lower operational costs but also meets the rising demand for environmentally sustainable transportation options. The company is actively exploring alternative fuels and innovative approaches to further advance its sustainability initiatives.
3. Canadian Pacific Kansas City Limited (NYSE:CP)
Number of Hedge Fund Investors: 52
Canadian Pacific Kansas City Limited (NYSE:CP) is a transcontinental railway shipping operator with a robust network spanning over 20,000 track miles. This network connects more than 30 ports, 30 automotive facilities, and numerous transload facilities and shortlines across North America. Canadian Pacific Kansas City Limited (NYSE:CP) serves a wide variety of industries, including agriculture, energy, chemicals, automotive, and consumer goods.
As the only railroad that links the United States, Canada, and Mexico through a single integrated network, Canadian Pacific Kansas City Limited (NYSE:CP) holds a unique position in the market. The company’s logistics hubs in Bensenville and Dallas play a pivotal role in supporting automotive logistics. Canadian Pacific Kansas City Limited (NYSE:CP) is actively pursuing partnerships to improve its services for both auto parts and finished vehicles. Additionally, Canadian Pacific Kansas City Limited (NYSE:CP) is aligning its rail networks with other operators, such as CSX Corporation, to create seamless connections for shippers in Mexico, Texas, and the Southeastern United States. This collaboration is anticipated to significantly boost intermodal business, particularly in Mexico, where the demand for efficient cross-border transportation is rapidly growing.
Canadian Pacific Kansas City Limited (NYSE:CP) is also focused on enhancing train speeds, reducing terminal dwell times, and increasing train capacity. At the same time, the company is developing customer-centric solutions to tap into new business opportunities.
2. FedEx Corporation (NYSE:FDX)
Number of Hedge Fund Investors: 55
FedEx Corporation (NYSE:FDX) is a global leader in the express shipping and logistics industry. The company has a vast network that spans more than 220 countries and territories, which helps deliver nearly 17 million packages each business day and connects over 3 million shippers with 225 million consumers. FedEx Corporation’s (NYSE:FDX) advanced logistics network ensures reliable and time-sensitive shipping solutions, making it an indispensable partner for industries such as e-commerce, healthcare, and retail.
FedEx Corporation (NYSE:FDX) is implementing a series of strategic initiatives to drive future growth and enhance its market position. One of the key initiatives is the DRIVE (Delivering Reliability, Innovation, and Value every day) program. DRIVE is a comprehensive business architecture that leverages data and technology to drive continuous improvement in network optimization, technology, and cost management. The DRIVE initiative is expected to deliver $4 billion in savings by the end of FY ‘25 versus the FY ‘23 baseline. FedEx Corporation (NYSE:FDX) is also implementing Network 2.0, which aims to streamline operations by consolidating facilities and optimizing routes, with a target of $2 billion in savings by the end of fiscal year 2027.
FedEx Corporation (NYSE:FDX) is also targeting the $80 billion air freight market with its Tricolor strategy, which aims to improve density and asset utilization. The company has created a dedicated sales team for this and is investing in digital tools to enhance the customer experience and capture market share. Furthermore, FedEx Corporation (NYSE:FDX) is strategically expanding its presence in key markets to capture new growth opportunities. The company is targeting high-value segments such as healthcare and automotive, where it is leveraging its unique portfolio, including cold chain support and specialized services, to gain market share.
1. Union Pacific Corporation (NYSE:UNP)
Number of Hedge Fund Investors: 78
Union Pacific Corporation (NYSE:UNP) is among the largest and most well-known shipping railroad companies in North America. The company operates an extensive network that spans 23 western states with over 32,000 miles of track. Union Pacific Corporation (NYSE:UNP) plays a vital role in the supply chain for various industries, including automotive, chemicals, construction, and agriculture.
Union Pacific Corporation (NYSE:UNP) is prioritizing the expansion of mainline and terminal capacities, constructing new sidings, and extending existing ones. These investments are particularly important in key growth regions such as the Pacific Northwest, where the company is enhancing its ability to manage soda ash and export grain, and the Southwest, where it is expanding its intermodal capabilities. Furthermore, Union Pacific Corporation (NYSE:UNP) is investing in advanced technologies such as GPS tracking for containers and rail pulse to boost service reliability and enhance the customer experience by offering real-time tracking and improved communication.
Union Pacific Corporation (NYSE:UNP) is also broadening its service offerings to address the evolving needs of its customers. For instance, the company recently launched a new domestic intermodal service that has successfully reduced transit times between Southern California and the Chicago area by two days. This advancement has attracted new customers while strengthening existing relationships.
While we acknowledge the potential of Union Pacific Corporation (NYSE:UNP) 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 UNP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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