The latest move in the ongoing trade war between U.S. and China saw the Trump administration announce that the U.S. would be withdrawing from the Universal Postal Union, a 144-year-old-treaty among 192 nations that helps set international postage rates.
The trading community considered this move as a bullish decision for international shipping rates. The result? Shipping stocks soared high on Monday and also helped garner a heavy dose of investor’s interest in overseas shipping stocks.
Top Ships Inc. (TOPS, $1.97) was the most notable runner amongst all the shipping stocks, as it recorded a +56% gain. Diana Containerships Inc (DCIX, $1.57), Sino-Global Shipping America, Ltd. (SINO, $1.26) and Globus Maritime Ltd (GLBS, $6.05) were some of the other top gainers, rising by +23.9%, +17.6% and +13.5%, respectively.
With a remarkable run at the onset of the week, traders are waiting to see if the surge in shipping stocks has the legs to carry forward or if the buying binge is just temporary. It's worth keeping an eye on.