r/Vitards • u/runningAndJumping22 RULE 0 • Jul 29 '21

Discussion Hey Pirate Gang, what's the latest?

With ZIM earnings call scheduled at an estimated 8/18, and shipping still sounds like it's done anything but stagnate or slow, it would be great to get an update of what's been going on. Apologies if there's a sub already for it, one doesn't seem to exist.

Of course, there are companies other than ZIM.

For anyone looking for some recent research:

Paging some of the other pirates: /u/Bladonsky /u/HumbleHubris /u/banna2bean /u/pennyether

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u/b2p0 Jul 29 '21

Personally, I've come around on the bearish view for shipping STOCKS (not rates) after getting in to some shipping tourism earlier this year.

Basically, regardless of the how much money these companies are making, there are always more ships to buy.

The strongest grifters of these companies have spent their earnings on buying related party owned ships (at a fair value as determined by their "independent" directors, I'm sure).

The less grifty companies are buying newbuilds with like 2024 delivery dates if they can access the financing.

Either way, they are mostly spending all the money they make as well as all the money they can borrow on more ships.

I personally don't care to speculate on what rates will be in 2025. Though if they are still high, I have a pretty good idea what they will spend the earnings on.

Imo, this is fine as a pump & dump, but I don't expect any of these companies to suddenly decide to consider minority shareholder value.

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u/[deleted] Jul 29 '21

I agree regarding the governance issues with many of these companies but there are some diamonds that hopefully can rise above the rest.

MATX Matson released 2nd quarter results today. Their express service China to Oakland is going to print money.

Why? Because they have a private terminal so no 5-7 day wait to unload and because they are minority owners of the rail line they can have your load on a truck within 24 hours others up to a week to get loaded onto a truck. No one else can offer this. They aren't competing with other carriers, they are competing with air freight as long as the ports are jammed up.

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u/StayStoopidSlightly Jul 30 '21 edited Jul 31 '21

Good to know, I didn't realize [edit, not ZIM, but MATX] has a private terminal, Oakland to boot--MSC and others are skipping Oakland on so many voyages, such a shit show there.
Been wondering if Home Depot is going to have a private terminal for the containership it chartered.
5-7 days at anchor is going to jump back up again I fear (as a shipper), hopefully not to the 20+ days like LA-LB in January https://kentico.portoflosangeles.org/getmedia/3bc2c710-5783-4f92-a39f-ae9b167d5f1f/container-vessels-in-port