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According to Drewry Shipping Consultants, the average cost of chartering a 40-feet steel container from Shanghai to Rotterdam is currently 547% higher than the past five-year seasonal average. The rising shipping costs are expected to contribute to increasing inflation.
Analysts expect shipping costs to rise further in the coming months as global demand increases with the fast-paced economic recovery. This should allow shipping companies to generate higher profits as oil prices remain under pressure. Thus, we think popular shipping companies ZIM Integrated Shipping Services Ltd.(ZIM), Matson, Inc.(MATX), and Danaos Corporation(DAC) should grow substantially in the near term.
