In a swift transformation of the container shipping industry, the number of publicly traded container carriers with market capitalizations exceeding USD 10 billion has dwindled from seven to three in just eighteen months. Share prices have taken a substantial hit, resulting in a staggering USD 135 billion loss in stock valuation for the eleven largest publicly traded container companies. This sharp decline is a marked departure from the market conditions observed in May 2022.
Major Shifts in Market Cap Categories
During 2022, several carriers, including Taiwan’s Evergreen, Yang Ming, Wan Hai Lines, and Korea’s HMM, achieved the coveted “large-cap” status with market capitalizations exceeding USD 10 billion. However, steep declines in their share prices have subsequently pushed them back into the “mid-cap” territory, which spans USD 2-10 billion. Notable companies in this category include SITC and Matson. ZIM, which initially saw a remarkable surge in stock value after going public in January 2021, now finds itself classified as a “small-cap” company with a market capitalization below USD 2 billion. As of now, ZIM’s stock is valued at USD 1.16 billion.
Notable Large-Cap Holders
While many have fallen from the large-cap ranks, Hong Kong-listed COSCO Shipping has managed to maintain its large-cap status. This achievement is notable given that the company operated as a mid-cap company before 2020. Hapag-Lloyd, on the other hand, has held the highest US dollar market capitalization since January, surpassing its larger competitors Maersk and COSCO. The company’s exceptional performance is reflected in its industry-beating per-TEU earnings of USD 1,766 for H1 2023, compared to Maersk Ocean’s USD 1,329. However, Hapag-Lloyd’s higher market cap can be attributed, in part, to its small 3.6% free float, which results in sale transactions having an outsized impact on the stock price.
Collective Market Capitalization Plunge
In May 2022, the eleven carriers boasted a collective market capitalization exceeding USD 243 billion. Fast-forward to the present, and this number has dwindled significantly to just under USD 110 billion. These remarkable shifts underscore the dynamic nature of the container shipping industry, where market capitalizations and company rankings can change rapidly in response to stock price fluctuations.
Investors and industry experts continue to closely monitor the container shipping sector, with these rapid market cap changes serving as a testament to the industry’s volatility and the need for adaptability in the face of market dynamics.
Fuente: Aplhaliner
