If shipping costs increase, then shipping companies will likely generate better earnings as a result of higher margins on crude and refined products, which will allow companies to raise prices instead of switching to dry goods.
When the Suez Canal was shut down back in 1967, freight rates increased five-fold and competition among shipbuilders increased capacity and gave rise to the supertanker. In 2004, the canal was closed for three days and delayed 135 ships, which pushed tanker stocks up 24% in the following three weeks.
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Max Chen contributed to this article.