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Gas supply crunch boosts LNG and tanker shipping exposure
The surge in shipping is tied to rising liquefied natural gas demand and competition for cargo across longer voyage distances.
MarketBeat Ratings says disruptions in the energy sector are rippling into shipping companies globally, with a gas supply crunch potentially benefiting parts of the industry that can capture rising demand for liquefied natural gas and related products.
The outlet notes that LNG benchmark prices are climbing and that competition for cargo is increasing for longer voyage distances, creating more favorable conditions for some shipping firms.
At the same time, MarketBeat Ratings cautions that higher costs and the risk of reduced exports could create trouble for other companies in the sector.
For investors, the piece contrasts selecting individual shipping names for higher upside versus using diversified exposure through the Breakwave Tanker Shipping ETF, BWET, highlighted as one of the top performing ETFs this year.
Latest closeNat gas $3.039 ▲2.4%