[jyl]

On Maersk stock, the problem for the containership industry is that during the Covid shipping boom way too many new containerships started construction, so now the industry is facing significant oversupply for the next few years or longer. For some reason not understood by me, when this stuff happens, containership companies don’t collectively mothball or scrap older less fuel efficient ships to keep capacity in balance with demand (like cruise lines do), instead they watch container rates and earnings go down and down and down. The Red Sea problem helped absorb new capacity for a while, but that absorption is over and will reverse when the Houthis are eventually stood down. I guess this is known to the markets and hence should be in the price, but Maersk is still above its pre-pandemic price and perhaps it should be below it. To the extent global supply chains shift even a bit to near-shoring, that would be a further negative and maybe that’s what the market is uncertain about.