Shipping Stocks Up On Increased Demand And Low Oil Costs

Global shipping company stocks have seen significant upside in recent days on a combination of lower oil prices and increased freight demand.

Frontline Ltd. FRO shares have been one of the big winners, trading at $2.86 Monday, up 27.11 percent and up approximately 114 percent since December 9.

Some of the increased demand appears to be coming from China amid stockpiling of low-priced crude oil, according to a Bloomberg report.

Bloomberg noted that the “cost of hiring the vessels surged to the highest in almost five years,” based on Baltic Exchange data.

Other stocks to watch include Nordic American Offshore Ltd NAO which closed at $11.88 Monday, up 6.64 percent.  

TOP SHIPS Inc TOPS has not fared as well as others and fell 5.47 percent to $1.21 while Nordic American Tanker Ltd NAT surged 2.05 percent to $9.45.

Teekay Tankers Ltd. TNK has also benefited from the trend and closed at $5.62 Monday, up 5.05 percent along with DHT Holdings Inc DHT, which closed at $7.02, up 5.72 percent.