Signs of shipping relief

But that’s not terrible for shipping stocks [Click to view in browser](. Dear Reader, We have some BIG UPDATES for all you Markets and Minds subscribers. [And you need to take action now to make sure you don't miss out!]( Our newsletter got a complete makeover. We overhauled the format and layout of the newsletter, making it easier to read and simpler to follow. And gave it a nifty new title - THE JUICE [But you won't receive this newsletter unless you sign up HERE.]( Because pretty soon, Markets and Minds will disappear FOREVER! Proprietary Data Insights Financial Pros Top Marine Shipping Stock Searches This Month Rank Name Searches #1 Pyxis Tankers 12 #2 Safe Bulkers 9 #3 Genco Shipping 7 #4 Diana Shipping 6 #5 Castor Maritime 4 We need inflation relief [Back Off Reaction GIF by Hyper RPG] Lower shipping rates are a welcome sign for the average Joe. We’ve been hit by a culmination of factors that drove prices for nearly everything higher. As transport rates abate, that gives us hope the rest of our supply chains smooth out. But don’t expect relief immediately. Several economists expect the supply chain damage to linger another two years. And as we discuss below, part of the lower freight rates is based on lower supply. That’s not good. We need demand to fall off in order to see true relief. And guess what one organization can make that happen? It rhymes with TED. Sponsored [Brining AI to Every Office?]( Is this the holy grail of AI for the workforce? Israeli small cap about to shock a lot of people. [Check it Out]( Supply chains Signs of shipping relief Key Takeaways - Empty containers now litter the Port of LA as sweeper ships inbound to transport the boxes back to Asia. - Dry Bulk shipping rates plunged in the last month as concerns over China’s slowdown coupled with Brazilian iron exports weigh on future shipment volumes. - Target found a way to become ‘smarter’ about fulfilling orders, leading the company to raise its forecast for the holiday season. [Count Rugen The Princess Bride GIF by filmeditor] No, the line of ships sitting off the coast of Los Angeles hasn’t decreased. So why are traders suddenly optimistic? Empties abound Despite hitting a record 84 ships moored outside the Port of LA, things on land started to clear up. - 65,000 [empty containers]( sit on the docks at the Port of LA, up 18% from a few weeks ago. - Import containers fell 25% to 71,000 since Oct. 24th. Sweeper ships have been contacted to shuttle some of those boxes back to factories in Asia. Railroads and trucking companies hauled butt to get cargo out, tickling port execs so much they postponed the late removal fees by one week. Not everyone is happy Farmers are raising pitchforks over the inefficiencies at the port. Reloading a ship takes so long that 2/3rds of containers leave LA empty. That leaves foreign ag exports stuck on the farms. Ocean rates plummet The most astonishing development has to be the collapse of the Baltic Dry Index, which measures ocean freight rates. As measured by the BDRY ETF, rates have plummeted more than 50% in the last 7 weeks. - Traders worry that China’s economic slowdown will crimp transport usage. - Additionally, China’s controls on coal cut imports with major producers like Australia. - Plus, Brazil’s iron ore miner Vale (VALE) is cutting production. While they’re still historically high, they are back into the “normal” range. Surprisingly, it hasn’t bludgeoned shipping stocks in the same way. Companies like Eagle Bulk Shipping (EGLE) are off 34% from their highs while Star Bulk Carriers (SBLK) is off only 27%. Companies get creative In today’s earnings report, Target (TGT) said they were changing the way they fulfilled products, getting ‘smarter’ about what they shipped and how much inventory they held. The company knows it can’t get everything customers want. Instead, it’s focusing on what they can do well. That’s a big reason executives said they expect a better than forecasted holiday season. The Bottom Line: Lower shipping rates are good for inflation, though bad for marine shipping investors. Keep an eye out for reports of declines in the total number of container ships at the Port of LA. We’ll also be curious to see if other retailers follow Target’s lead. 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