8 Best Marine Shipping Stocks to Invest In

4. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)

Number of Hedge Fund Holders: 26

ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is a prominent name in the container shipping industry, recognized for its innovative approach and extensive global reach. The company’s operations span over 90 countries and services that touch approximately 300 ports worldwide, which has helped it create a diverse customer base of more than 32,000 clients.

The broad network supports its mission to provide efficient and reliable shipping services on key trade routes, including the Pacific, Latin America, Atlantic, Cross-Suez, and Intra-Asia. It takes its place among our best marine shipping stocks to invest in.

A significant part of the company’s competitive edge is in its agile fleet management and deployment strategy. The company is in the middle of a substantial fleet renewal initiative, featuring a modern lineup of 46 new container ships, of which 28 are powered by liquefied natural gas (LNG).

As of mid-May, ZIM Integrated (NYSE:ZIM) had already received 30 of these vessels, with the remaining 16 scheduled for delivery by the end of 2024. Once this fleet renewal program is completed, over half of its operated capacity will consist of these newbuild ships, with the rest of the portion being LNG-powered.

In the second quarter, the company showed strong performance, evidenced by a nearly 11% year-over-year increase in carried volume. The growth resulted in a remarkable 48% rise in revenue, reaching $1.93 billion.

Furthermore, net income climbed by 46% to $19 million, both figures surpassing analysts’ expectations. CEO Eli Glickman credited the success to a strategic increase in the company’s exposure to the spot market, which allowed it to capitalize on elevated rates that have persisted longer than anticipated.

Glickman is confident about ZIM Integrated’s (NYSE:ZIM) performance in the second half of 2024. He sees improved results driven by ongoing supply pressures from the Red Sea crisis, alongside favorable demand trends.