How important are shipping stocks to the global economy?

We've all seen how critical shipping stocks are to the global economy. Global trade value hit $28.5 trillion in 2021, and much of that cargo was transported via publicly traded companies. There's risk to venturing into these waters, however.

Are shipping stocks a risk?

Global trade value hit $28.5 trillion in 2021, and much of that cargo was transported via publicly traded companies. There's risk to venturing into these waters, however. Shipping stocks are notoriously cyclical, and companies can get in trouble during downturns due to the leverage that many use to build their fleets.

Should you invest in marine shipping stocks?

Another alternative to investing in marine shipping stocks is to invest in other transportation stocks. These stocks use semi-trucks, planes, and trains to ship goods across the world. Investing in these types of stocks can provide investors with exposure to different parts of the transportation sector, reducing their overall risk.

Why did shipping stocks rise on Monday?

MILAN, Dec 18 (Reuters) - Shipping stocks rose across European exchanges on Monday after Iranian-backed Houthi militants in Yemen stepped up attacks on vessels in the Red Sea, prompting Denmark's A.P. Moller-Maersk (MAERSKb.CO) and other freight firms to avoid the Suez Canal.