Shipping Companies & Stock Exchanges

Shipping stocks have never been the favorites of any stock exchange around the world. The neutral to negative attitude of investors toward shipping companies is mainly attributed to the relatively small size, old-fashioned corporate structure, and the limited growth potentials of these companies. With the exception of the Oslo Stock Exchange, where listed shipping companies represent a respectable 14.5% of the total market’s capitalization, shipping companies represent an insignificant portion of the other stock exchanges’ total capitalization.

With regard to their corporate structure, most shipping companies retain the old-fashioned, unsophisticated structure where management and ownership almost always coincide. Such a structure allows for limited control from outsiders which makes investors reluctant to commit their capital to companies where they have little or no say.

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