Scoop Up These 3 Shipping Stocks on the Dip By StockNews – Investing.com

Scoop Up These 3 Shipping Stocks on the Dip By StockNews – Investing.com

Global supply chain constraints, backlogs in cargo deliveries, and several other challenges have caused the shipping industry to suffer a massive sell-off lately. However, given the heightened demand for shipping services to meet raw material needs worldwide, the industry should rebound soon. Therefore, we think it could be wise to bet on quality shipping stocks ZIM Integrated (ZIM), Matson (NYSE:), and Star Bulk Carriers (NASDAQ:) at their current, slashed price levels. Let’s discuss.Factors including slowing industrial production in China, surging oil prices, and a critical oil spill in Southern California have caused considerable disruptions in the global supply chain, increasing shipping costs to record highs lately. Consequently, the shipping industry witnessed a sell-off earlier this month.

However, because the demand for shipping remains elevated amid the global economic recovery, the industry should witness a solid rebound. Supply chain disruptions and higher shipping costs are expected to last until 2022, but governments worldwide are taking various steps to address these headwinds.