Even with the brunt of the Great Recession behind us, the global shipping industry has still seen companies slip into the deep blue of nonexistence. However, in the most recent month of market trading, some have bounced back with the best figures seen in years; we’re thinking about Ultrapetrol, whose stock soared 79.75% in the last 30 days, along with Star Bulk Carriers who were up about 20%.
Many are wondering what gives for the sudden upswing in the stock market while others are blinking in skepticism. There are a few factors that have played into this, chief among them, are the economic stimulus packages issued by central banks around the world.
On September 13th, 2012, Ben Bernake, Chairman of the Federal Reserve, announced his plan of Quantitative Easing 3. The plan essentially amounts to buying up vast amounts of mortgage-backed bonds in order to spruce up the economy (similar bullish measures from the governments of Japan and Europe). At the surface of things, this plan seems feasible and beneficial for everyone in the end: demand would drive manufacturers to increase production, who would then have to hire a larger staff to accommodate the demand, as well as more materials and equipment and so forth and so on.
While the shipping industry on the whole is a far cry away from total recovery from The Great Recession, things are on their way up no matter which side of the coin one looks at. Many companies weathered the storms of recessions past, and those that have been strongest in the previous five years will be those best positioned to see profit gains as the global recovery strengthens.
Author
Rich Harkey
Rich Harkey
Senior Strategy Manager
Rich Harkey is a results-driven professional with extensive experience in the logistics and supply chain industry.
As the Senior Strategy Manager at Lojistic, Rich leverages over three decades of expertise to help businesses improve their shipping strategies and reduce costs. With a deep understanding of the requirements of shippers and the operational intricacies of carriers, he excels in everything from optimizing business rules and managing carrier invoices to negotiating carrier contracts.
Rich's comprehensive knowledge of the logistics industry, combined with his strategic insights and passion for data analysis, has enabled thousands of companies to gain visibility into their shipping expenses, driving impactful results.