Global shipping is recording good rebound from Covid 19 shock: report
The global shipping industry is rebounding well from the Covid 19 shock since the depth of the global pandemic lockdowns in mid-March, the world’s biggest shipping companies have added over US$ 23 billion to their market value.
Shareholders who would have invested in global shipping at that moment would have seen an 85% increase in the value of their shares.
The biggest global shipping companies have earned over US$ 140 billion in revenue over the past twelve months alone.
40% of these revenues were earned from just three companies alone.
These were the three Japanese giants that dominate global shipping, Nippon Yusen Kabushiki Kaisha, known as NYK Line (US$ 25 billion revenue), Mitsui OSK Lines, known as MOL (US$ 14 billion revenue) and Kawasaki Kisen Kaisha, known as ‘K’ Line (US$ 13 billion revenue). Combined, they would be almost 40% larger than Danish giant Maersk.
Many of the ships that are used by these companies are registered in ‘Flags of Convenience’ countries such as Panama, Marshall Islands and Liberia. (Hellenicshippingnews.com)
The rebound recorded by the global shipping industry will have a direct impact on the growth of Sri Lanka’s maritime sector. Sri Lanka’s geographical positioning in the Indian Ocean and the prominence given to the island by China in its Belt and Road Initiative (BRI) have made Sri Lanka’s ports, shopping and maritime sectors potential business/investment opportunities for foreign businesses/investors. Given Sri Lanka’s close trade ties with many countries, including China, foreign businesses interested in doing business with China could look at setting up base in Sri Lanka to engage with China.
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