In this article, we will discuss the 11 Best Marine Shipping Stocks to Invest in Now.
According to Dr. Shashi Kumar of the US Naval Institute, geopolitical developments tend to have a greater impact on the highly volatile shipping market compared to market forces. Since the 2007–08 financial crisis, the broader global shipping market continues to face a series of new challenges. However, the challenging conditions this industry faced in 2024 were unmatched over the past decade and a half, says Kumar. The year’s challenging conditions included the prolonged war in Ukraine, wanton Houthi attacks in the Red Sea as well as increased tensions in the South China Sea. Kumar also noted that container ships decided to avoid the Suez Canal and chose to transport goods around southern Africa, which increased transit time and greenhouse gas emissions. Despite this, the owners of these container ships saw a profitable year.
What Lies Ahead for Marine Vessels Market?
The marine vessels market is expected to reach US$133.63 billion by 2030 from US$111.10 billion in 2024, as per Research and Markets. While global trade continues to fuel the demand for different types of ships, the military navy growth has also been lending support to expand the market. Notably, the requirement for larger and more versatile vessels stems from the demand for efficient transportation of goods. Also, increasing passenger and tourism needs continue to fuel fleet expansion and technology upgrades.
The firm believes that several cruise lines have been adding more ships to cater to the needs of travelers focusing on unique experiences. Overall, the strategic fleet renewal remains critical for market improvement. New and fuel-efficient vessels have been supporting to meet environmental standards and lower costs, says Research and Markets. The transition towards sustainable shipping practices continues to become more critical to obey the international rules targeting reduced emissions.
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Cargo Vessels Segment Is Expected to Lead Growth
Research and Markets believes that cargo vessels continue to become a critical part of commercial shipping. Such vessels tend to play a vital role in global trade by transporting numerous goods across the seas. With the demand for faster and more reliable shipping increasing, the broader industry remains focused on adopting new technologies. Notably, modern navigation systems, eco-friendly fuels, and automation tend to enhance efficiency, improve safety, and reduce the environmental impact. Therefore, as global trade has been expanding, cargo vessels remain critical when it comes to international commerce and economic growth.
With this in mind, let us now have a look at the 11 Best Marine Shipping Stocks to Invest in Now.
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Our Methodology
To list the 11 Best Marine Shipping Stocks to Invest in Now, we used a screener to shortlist the companies catering to the broader marine shipping industry. Next, we mentioned the hedge fund sentiments around each stock, as of Q4 2024. Finally, the stocks were arranged in ascending order of their hedge fund sentiments.
Why are we interested in the stocks that hedge funds pile into? 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11 Best Marine Shipping Stocks to Invest in Now
11. Ardmore Shipping Corporation (NYSE:ASC)
Number of Hedge Fund Holders: 13
Ardmore Shipping Corporation (NYSE:ASC) is engaged in the seaborne transportation of petroleum products and chemicals. The global oil demand accelerated in Q4 2024, and further strong growth is expected in 2025. Notably, the lower refining margins and uncertainty in broader global markets resulted in a general risk-off approach. There were some long-haul cargos, mainly on east to west runs, and broader activity remained somewhat muted. However, things have now begun to pick up.
The market players are starting to take positions. Ardmore Shipping Corporation (NYSE:ASC) believes that trading firms have been arbitraging shifting cargo flows, time charter activity continues to rise, and refining margins have jumped. Collectively, these measures are expected to result in a boost to tonne-mile demand. Ardmore Shipping Corporation (NYSE:ASC) anticipates steady growth in underlying demand for refined oil products as well as expanding the biofuel trades, which would support product tanker demand, while the MR fleet ages to its oldest level in decades.
Furthermore, the combination of regulatory uncertainty, expansion of sanctions, and widespread geopolitical instability continue to underscore the value of cargo and destination flexibility that remains the hallmark of MR product tankers and chemical tankers. Aristotle Capital Boston, LLC, an investment advisor, released its Q4 2024 investor letter. Here is what the fund said:
“Ardmore Shipping Corporation (NYSE:ASC), a product and chemical transportation company focused on modern mid-sized vessels, experienced headwinds due to a combination of factors including a weakening tanker market with lower spot rates, potential concerns about geopolitical instability impacting shipping routes, and a general market downturn affecting the shipping industry. We maintain a position, as we believe the company continues to operate from a position of strength, driven by recent shareholder-friendly capital allocation decisions, strong operating performance, and a favorable industry supply-demand backdrop.”
10. Danaos Corporation (NYSE:DAC)
Number of Hedge Fund Holders: 13
Danaos Corporation (NYSE:DAC) owns and operates containerships and drybulk vessels. In December 2024, the company added two 9,200 TEU newbuilding containerships to its order book, which have expected deliveries in 2027. The company took delivery of 6 newbuilding containerships in 2024 and 1 in January 2025. Danaos Corporation (NYSE:DAC)’s remaining orderbook has a further 15 newbuilding containership vessels with an aggregate capacity of 128,220 TEU with anticipated deliveries of 1 vessel in 2025, 3 vessels in 2026, 9 vessels in 2027, and 2 vessels in 2028.
Danaos Corporation (NYSE:DAC) remains highly insulated from the near-term market uncertainty, given its 97% coverage for 2025 and 79% for 2026 at healthy rates, protecting it from market volatility. The company’s charter backlog of $3.4 billion offers it a certainty of income and firepower to explore accretive investments. Danaos Corporation (NYSE:DAC) has chartered 13 out of its 15 newbuildings for 5 years and has managed to arrange a new $850 million facility from a bank syndicate focused on fully covering the funding of all vessels on order. The company remains focused on maintaining a strong financial position, securing long-term contracts for the vessels coming off charter, and making investments in modern, fuel-efficient container vessels.
9. SFL Corporation Ltd. (NYSE:SFL)
Number of Hedge Fund Holders: 14
SFL Corporation Ltd. (NYSE:SFL) is an international ship owning and chartering company. The company was able to add several new vessels and over $2 billion fixed-rate charter backlog in 2024. Over the last decade, the company has transformed from a vessel financing provider to a maritime infrastructure company. As of December 31, 2024, the estimated fixed-rate charter backlog from SFL Corporation Ltd. (NYSE:SFL)’s fleet of 80 wholly or partly owned vessels and newbuildings under construction was ~$4.3 billion, with a weighted remaining charter term of 6.7 years.
Notably, ~67% of the fixed rate charter backlog is to customers having an investment grade credit rating. During Q4 2024, the company’s fleet generated a gross charter hire of $231.7 million, which includes $2.6 million of profit share. The owning of diversified portfolio of vessels on long-term charters offers an increased earnings visibility, lower residual value risk as well as lower concentration risk to an individual shipping market or particular customer. Furthermore, it allows SFL Corporation Ltd. (NYSE:SFL) to continuously reinvest in new assets and provide attractive dividends.
The company expects that newbuild yard prices for standard vessels rose by 30-40% over the last few years because of inflationary pressure in international commodity prices and labor markets. This, together with a higher focus on premium vessel operations and fuel efficiency, can have implications for future shipping rates and the value of the vessels after the existing charter periods. SFL Corporation Ltd. (NYSE:SFL) opines that owning a fleet of modern high-quality maritime assets and continuous efforts to optimize the vessels’ performance is important to capture this value.
8. Hafnia Limited (NYSE:HAFN)
Number of Hedge Fund Holders: 15
Hafnia Limited (NYSE:HAFN) owns and operates oil product tankers. After a strong first 9 months in 2024, the product tanker market softened in Q4 2024, impacted by crude sector cannibalization of the product tanker space and shorter voyages, partly mitigated by high daily loadings. Despite the shift in broader market dynamics in Q4 2024, Hafnia Limited (NYSE:HAFN) exhibited resilience in navigating the market, posting a net profit of US$79.6 million in Q4 2024. Overall, the company focused on optimizing the existing assets rather than expanding its fleet, which aided profitability. Its adjacent fee-generating business segments performed well, posting full-year revenue of US$35.2 million.
While Q4 2024 saw rate pressures coming from increased crude tanker cannibalization, trade volumes and tonne-miles were at elevated levels, thanks to the robust global demand. Moving forward into 2025, Hafnia Limited (NYSE:HAFN) believes that the fundamental drivers of its business remain solid. On the supply side, the product tanker orderbook-to-fleet ratio is ~22% as of February 2025. However, long-term fundamentals remain positive as a growing number of tankers over 20 years old are likely scrapping candidates. Hafnia Limited (NYSE:HAFN)’s growth is expected to be driven by its focus on making strategic investments in technology and innovation while, at the same time, using the extensive fleet capabilities.
7. Costamare Inc. (NYSE:CMRE)
Number of Hedge Fund Holders: 16
Costamare Inc. (NYSE:CMRE) owns and operates containerships and dry bulk vessels. During Q4 2024, the company chartered, on a forward basis, 12 containerships with an average time charter duration of about two and a half years as well as estimated contracted revenues of close to $330 million. Notably, the containership fleet employment stood at 96% and 69% for 2025 and 2026, respectively. The total contracted revenues came in at $2.4 billion, with a remaining time charter duration of 3.4 years. Costamare Inc. (NYSE:CMRE) announced that it plans to spin off the company’s dry bulk business into a standalone company, Costamare Bulkers Holdings Limited.
Costamare Inc. (NYSE:CMRE)’s board expects that the proposed separation is expected to unlock the inherent value within the 2 companies, which have unique growth prospects and investment opportunities. This separation can offer significant benefits, including improved financial flexibility to pursue distinct operating priorities and strategic initiatives focused on the container and dry bulk shipping markets, respectively. Also, the separation is expected to result in a simplified structure with separate, focused balance sheets and capital allocation strategies that are tailored to each business, fueling operating efficiency and value creation. Costamare Inc. (NYSE:CMRE) has no significant debt maturities until 2027.
6. Global Ship Lease, Inc. (NYSE:GSL)
Number of Hedge Fund Holders: 21
Global Ship Lease, Inc. (NYSE:GSL) operates in the container shipping industry. It owns and charters out containerships under long-term, fixed-rate charters to container liner companies. The demand for the company’s well-specified, fuel-efficient vessels remained robust across 2024. Global Ship Lease, Inc. (NYSE:GSL) took advantage of such tailwinds in a bid to secure extended charter coverage throughout its fleet, resulting in the addition of $885 million of contracted revenues to its substantial backlog. The company has been able to secure attractive, multi-year coverage, even for its oldest ships.
Amidst a volatile and uncertain geopolitical environment, the company continues to benefit from optionality and deployment flexibility represented by Global Ship Lease, Inc. (NYSE:GSL)’s fleet of mid-sized and smaller containerships. The company remains well-placed to sustain its track record of creating shareholder value via operational excellence, capital allocation discipline, and opportunistic acquisitions. Over the past several years, Global Ship Lease, Inc. (NYSE:GSL) has benefited from the shipping up-cycle, capitalizing on its healthy cash flow and forward visibility to opportunistically refinance, extend its debt maturities, and reduce the borrowing costs.
Moving forward, the company remains focused on continuing its fleet renewal and optimization strategy. As of December 31, Global Ship Lease, Inc. (NYSE:GSL) had $1.88 billion, resulting in 2.3 years of average remaining contract cover. Furthermore, during 2024 and the first couple of months of 2025, the company added 50 charters for ~$885 million of additional contracted revenues.
5. Star Bulk Carriers Corp. (NASDAQ:SBLK)
Number of Hedge Fund Holders: 22
Star Bulk Carriers Corp. (NASDAQ:SBLK) is engaged in the ocean transportation of dry bulk cargoes. Operationally, the company has made progress in integrating systems and processes, creating a ship-owning and management platform that combines the strengths of Star Bulk and ex-Eagle Bulk. Delivering on the commitment to synergies, Star Bulk Carriers Corp. (NASDAQ:SBLK) managed to cumulatively reduce costs by $21.8 million since April 2024. Notably, in April 2024, the company completed its merger with Eagle Bulk Shipping Inc. In Q4 2024, the company achieved $12.6 million in cost reductions, which is equivalent to an annualized run rate of more than $50.0 million.
With Star Bulk Carriers Corp. (NASDAQ:SBLK)’s healthy balance sheet, scale, and deep industry expertise, it remains well placed to capitalize on future opportunities. The company remains cautiously optimistic regarding the medium-term outlook for the dry bulk market, considering the favorable supply picture, stricter environmental regulations, and steps by the Chinese government in a bid to stimulate the economy. Amidst increased geopolitical uncertainty, Star Bulk Carriers Corp. (NASDAQ:SBLK) focuses on actively managing its diverse scrubber-fitted fleet to take advantage of emerging market opportunities and to continue creating value. In February 2025, the company received the credit committee approval for a senior secured revolving facility of an amount up to $50 million. Star Bulk Carriers Corp. (NASDAQ:SBLK) has 13 debt-free vessels with an aggregate market value of $250 million.
4. Genco Shipping & Trading Limited (NYSE:GNK)
Number of Hedge Fund Holders: 24
Genco Shipping & Trading Limited (NYSE:GNK) is engaged in the ocean transportation of drybulk cargoes. The company’s CEO, in an interview with Bloomberg Television, stated that it is prepared to pass on the costs to the US exporters or position the ships elsewhere in case the proposed fees on the Chinese ships come into play. Overall, Genco Shipping & Trading Limited (NYSE:GNK) believes that the company remains well-prepared if Trump moves forward with the fees to counter China’s maritime dominance. The strategy seems to have provided a sigh of relief to the investors.
Genco Shipping & Trading Limited (NYSE:GNK) has made significant progress in renewing its fleet, divesting older, non-core assets near market highs, while, at the same time, strategically redeploying proceeds in a bid to capitalize on attractive growth opportunities. At the time of announcing its Q4 2024 results, Genco Shipping & Trading Limited (NYSE:GNK) highlighted that it has invested $134 million to replace smaller and less fuel-efficient vessels with modern, high-specification Capesizes. This has increased its investments in the fleet since 2021 to $283 million and has further expanded its earnings power. The fleet-wide TCE for the full year rose 29%, demonstrating the robust 2024 drybulk market as well as its sustained outperformance versus the benchmarks.
3. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Number of Hedge Fund Holders: 29
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) provides container shipping and related services in Israel and internationally. The benefits of fleet transformation were evident across 2024 and reflected in its healthy financial results and volume growth which surpassed the overall market. Considering the larger vessels, which are well-poised to address emissions reduction targets and tailored to the trades in which the company operates, ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) increased carried volumes 14% YoY versus the average market growth of ~6% while offering superior margins.
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) enters 2025 with a resilient business and modern cost- and fuel-efficient capacity, 40% of which remains LNG-fueled. Given that its industry is highly volatile, the company is confident in its agile approach and competitive position. Amidst evolving market conditions, the company remains focused on strategic initiatives to enhance its competitive position. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)’s agility in responding to market changes, together with its robust presence in critical shipping routes, can enable the company to capitalize on short-term inefficiencies in the global supply chain. The new capacity deployed on the Asia to US East Coast trade, successful expedited services to the US West Coast as well as its expanded presence in Latin America continue to fuel its market share gains.
2. Matson, Inc. (NYSE:MATX)
Number of Hedge Fund Holders: 36
Matson, Inc. (NYSE:MATX) is engaged in the provision of ocean transportation and logistics services. Stephens analysts upped the company’s price objective to $175, up from the prior target of $165, while maintaining an “Overweight” rating. The adjustment came after the company’s strong Q4 2024 earnings, which exceeded expectations. Notably, Matson, Inc. (NYSE:MATX)’s 4Q 2024 EPS came in at $3.80. Moving forward, the company anticipates that elevated freight rates in its China service will persist into Q1 2025.
Beyond the first quarter, Matson, Inc. (NYSE:MATX)’s China service rates are expected to be driven by the timing of trade flow normalization in the Red Sea, as well as other geopolitical factors, supply chain activity, and the trajectory of the US economy. In the near term, Matson, Inc. (NYSE:MATX) expects continued economic growth in Alaska, aided by a low unemployment rate, job growth as well as continued oil and gas exploration and production activity. In Q4 2024, the operating income for the company’s Logistics segment sat at $10.1 million, or $1.2 million higher as compared to the level achieved in Q4 2023. The increase was mainly because of a higher contribution from supply chain management. The company anticipates Ocean Transportation operating income for Q1 2025 to be significantly higher than the $27.6 million witnessed in Q1 2024.
The London Company, an investment management company, released Q2 2024 investor letter. Here is what the fund said:
“Matson, Inc. (NYSE:MATX) – MATX ocean freight services are benefiting from rising shipping rates and improving market conditions. Global ocean freight pricing has been driven up by the ongoing disruption in the Red Sea, coupled with ramping peak season demand and healthier trade volumes. MATX’s success since the onset of the pandemic has led to permanent volume additions in the China trade lane, a transformed balance sheet. and significant share count reduction. MATX remains strategically positioned as a US Jones Act shipping operator and its expedited freight service continues to offer an attractive value proposition for its customers.”
1. Kirby Corporation (NYSE:KEX)
Number of Hedge Fund Holders: 41
Kirby Corporation (NYSE:KEX) operates domestic tank barges in the US. Through the marine transportation segment, the company transports petrochemicals, black oil, refined petroleum products, and agricultural chemicals by tank barge. Stifel analysts sustained a “Buy” rating on the company’s stock with a price objective of $135.00. The company’s sales of power equipment for data centers were highlighted. As per the analysts, the M&A opportunities in the inland barge market appear to be increasingly tangible, which can act as a catalyst for Kirby Corporation (NYSE:KEX)’s stock.
The company continues to experience a strong demand throughout its business segments. Its emphasis on the inland barge market, together with its strong sales in power equipment, places it well in the industry. The firm’s report demonstrated confidence in Kirby Corporation (NYSE:KEX)’s operational strength and its growth potential, mainly given the possible impact of strategic acquisitions. For FY 2024, it saw net earnings attributable to the company of $286.7 million or $4.91 per share as compared to $222.9 million or $3.72 per share for 2023. Overall, Kirby Corporation (NYSE:KEX)’s barge utilization rates averaged in the 90% range for Q4 2024. During the quarter, the stable customer demand, together with continued limited availability of large capacity vessels, led to mid-to-high-20% YoY increases on term contract renewals as well as average spot market rates that increased in the low teens range YoY.
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