We recently published a list of 11 Best Marine Shipping Stocks to Invest in Now. In this article, we are going to take a look at where ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) stands against other 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.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
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.
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).
A fleet of vessels docking at a busy harbor, signaling the company’s presence in global marine shipping.
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.
Overall, ZIM ranks 3rd on our list of best marine shipping stocks to invest in now. While we acknowledge the potential of ZIM as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than ZIM but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
