Totally agree re HAUTO, shipping has had a hard time lately. WAWI is also very interesting, similar valuation, avg age of fleet is older. They differ in that they have terminals and provide auto manufactures with finishing services via their processing centers. The market seems to focus on their lower CBM rates but they have different trade mix/routes... I own both but more WAWI
With Höegh, are you concerned about big EU and US tariffs on Chinese cars, impacting demand for car transports? EU will now have 55% tariffs and presumably China will retaliate with huge tariffs on European cars.
The exact wording of contracts is something investors don't get access to. As a generalist, the typical contract cancellation penalties are a bit outside of my grasp.
I will have yo do a new head to head with Torm, but the appeal of ECO is the youngest fleet. So ECO has the best path to survive to the other side of this period of soft day rates.
any thoughts on CLCO? Absolutely been trashed since recent earnings... a lot of insider vesting going on it appears. 17% dividend assuming they don't cut... ZIM is also interesting here but it has been a widowmaker in the past
Hi Steve, thanks for writing this article. You've inspired me to find out whether Scorpio Tankers have a lot of locked in contracts and would therefore be worth keeping or not.
In theory, Hoegh should not be affected by Trump tariffs. But in reality, if an important customer is at risk of bankruptcy, I've seen companies split losses to keep a client relationship alive.
Totally agree re HAUTO, shipping has had a hard time lately. WAWI is also very interesting, similar valuation, avg age of fleet is older. They differ in that they have terminals and provide auto manufactures with finishing services via their processing centers. The market seems to focus on their lower CBM rates but they have different trade mix/routes... I own both but more WAWI
Ahh, thank you, I didn't know the details on WAWI, only that it has been recommended to me a few times.
With Höegh, are you concerned about big EU and US tariffs on Chinese cars, impacting demand for car transports? EU will now have 55% tariffs and presumably China will retaliate with huge tariffs on European cars.
Their boats are fixed contract for 5 years. That's someone else's problem
Any concern the contracts could just be cancelled? Different industry but I saw with BORR and VAL contracts being cancelled on a whim.
The exact wording of contracts is something investors don't get access to. As a generalist, the typical contract cancellation penalties are a bit outside of my grasp.
What about TORM vs ECO? Is ECO still the preferred play?
I will have yo do a new head to head with Torm, but the appeal of ECO is the youngest fleet. So ECO has the best path to survive to the other side of this period of soft day rates.
any thoughts on CLCO? Absolutely been trashed since recent earnings... a lot of insider vesting going on it appears. 17% dividend assuming they don't cut... ZIM is also interesting here but it has been a widowmaker in the past
CLCO cut the dividend, but put the money toward share buybacks at 0.55x book value. All good for me
Hi Steve, thanks for writing this article. You've inspired me to find out whether Scorpio Tankers have a lot of locked in contracts and would therefore be worth keeping or not.
I haven't looked at Scorpio, but I've been hunting for the right dry bulk name
Would Hoegh be effected by Trump Tariffs? or this wouldn't be a problem because contracts are fixed?
In theory, Hoegh should not be affected by Trump tariffs. But in reality, if an important customer is at risk of bankruptcy, I've seen companies split losses to keep a client relationship alive.