Liner stocks take flight

Shares of Global Ship Lease gained traction Monday on the heels of an announcement in which the owner outlined plans to purchase another containership.

Nasdaq-quoted GSL watched its stock jump 4.04\% to $5.15 in the wake of a statement that also included encouraging commentary from its chief executive.

In addition to the ongoing pursuit of more acquisition targets Ian Webber confirmed that his companyalso intends to reinstate a dividend down the road.

The London-based executive failed to shed light on timing but some equityanalysts believe a declaration will be made sooner rather than later.

While shares of GSL are on the up it failed to take the title of ‘Best Performer’ on the TradeWinds Shipping Index.

Danaos and Greek compatriot Box Ships made the cut in midday trading, however, with gains of 5.90\% and 5.10\%, respectively.

Some forecasters believe the rally in this corner of the market reflects improving sentiment about the near-term future of the segment.

In a recent market briefing ICAP pointed out that the idle containership capacity has fallen below 200,000 teu, which reflects a low unseen since August 2011.

“There are more than 20 ships waiting outside of Los Angeles and Long Beach and the prospects are looking rather unchanged in the near future,” the firm added in reference to congestion.

“Of course this remains positive for the chartering market and we expect to see further demand in the panamax and post-panamax segment.”

source:www.tradewindsnews.com