Archives

Please click on a button below to jump straight to that category.
March 28, 2019

Won’t They Add More Boats…?


Reader: …But Kuppy, won’t they build more boats and crush rates? Me: With what money?   Shipping is a highly cyclical industry. A boat lasts for two decades but earns most of its money over a handful of quarters—where it often earns truly extraordinary profits. Unfortunately, these earnings incentivize over-ordering and a subsequent glut of vessels for years into the future; destroying charter rates ... Read More
Categories: Investments
Positions Mentioned: STNG
January 13, 2019

Scorpio Tankers


Increased government regulation is a fact of life—particularly in the shipping sector. As a shipping investor, this tends to be good news; as disruption usually upsets existing trade patterns and leads to an increase in charter rates. I learned the benefit of this nearly two decades ago, when single-hull crude carriers were phased out following the Exxon Valdez accident. The resulting shortage of new ... Read More
Categories: Investments
Positions Mentioned: STNG
Scroll Up