Braemar shares fall as shipping broker reports drop in profits Proactive uses images sourced from Shutterstock Braemar PLC (LSE:BMS, OTC:BSEAF) shares fell 5.3% to 212p after the shipping and energy broker reported a drop in revenue and profits for the year to February 2026, despite finishing the year in line with expectations. The Middle East conflict is creating a mixed picture for shipping, with higher freight rates but lower volumes in certain markets, the company said. Its forward order book stood ...

Group 1 - Japan's Prime Minister Sanae Takaichi requested an additional coordinated release of oil stockpiles from the International Energy Agency (IEA) to mitigate risks from ongoing conflicts in the Middle East [1][3] - The IEA is currently consulting with governments in Asia and Europe regarding the potential release of more oil stockpiles if necessary, following a record release of 400 million barrels agreed upon on March 11, which represents only 20% of the total oil and oil-product stocks held by consuming nations [2][3] - There are currently 45 Japan-related ships stranded in the Gulf due to the closure of the Strait of Hormuz, highlighting the impact of geopolitical tensions on shipping and oil supply chains [4]

Diplomatic Developments - The United States has proposed a comprehensive 15-point ceasefire plan to Iran, addressing missile limits and nuclear program rollback in exchange for sanctions relief [2][9] - High-level talks between Washington and Tehran regarding the nuclear program may occur in Islamabad soon, as indicated by IAEA Chief Rafael Grossi [3] Energy Market Implications - BlackRock CEO Larry Fink warned that oil prices reaching $150 per barrel could lead to a global economic contraction, emphasizing the importance of stabilizing energy flows through the Strait of Hormuz [4][9] - European equity markets showed positive movement, with Germany's DAX rising 1.5% and the STOXX 600 gaining 0.71% amid hopes for a diplomatic resolution [9] Economic Sentiment in Europe - The German Ifo Business Confidence index is expected to decline due to logistical uncertainties stemming from the conflict [5] - Spain's Producer Price Index (PPI) for February fell 7.0% year-on-year, indicating a reduction in industrial price pressures, while Sweden's Economic Tendency Survey slightly decreased to 99.9, reflecting subdued consumer confidence at 95.2 [8] Central Bank Actions - Traders have shifted expectations for the Bank of England, now pricing in 61 basis points of interest rate hikes by year-end, a significant change from previous cut expectations [6][9] - ECB's Mārtiņš Kazāks suggested that an early rate move may be necessary if inflation spreads across the economy [6] Corporate Developments - Johnson & Johnson is reportedly considering a takeover of Nanobiotix, indicating potential strategic moves in the healthcare sector [7] - COSCO Shipping has resumed booking services in the Middle East, including the UAE, Saudi Arabia, and Iraq, which may signal easing maritime security concerns [9]

Core Viewpoint - Flex LNG has secured a new Time Charter Agreement for the Flex Aurora, with a minimum firm period of two years and potential extensions totaling up to eight years, reflecting strong demand in the LNG shipping market [1][2]. Group 1: Contract Details - The new contract for Flex Aurora includes a minimum firm period of two years, with options for the charterer to extend for additional periods of 2+2+2 years, potentially committing the vessel until 2034 [1][2]. - Following this announcement, Flex LNG's total contract backlog is a minimum of 55 years, which could increase to 82 years if all options are exercised by the charterers [2]. Group 2: Market Dynamics - The company notes favorable dynamics in the LNG shipping spot market, with the new contract for Flex Aurora allowing two vessels to operate in a currently firm spot market [3]. - The new contract, along with the company's remaining spot exposure, is expected to positively impact earnings in the second quarter of 2026 [3]. Group 3: Company Overview - Flex LNG operates a fleet of thirteen state-of-the-art LNG carriers, all equipped with the latest generation two-stroke propulsion technology, enhancing fuel efficiency and reducing carbon footprint compared to older vessels [4].

1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints of the Report - The freight rate of Maersk in the second week of April decreased, and the valuation of the main contract is gradually becoming clear. The settlement price of the April contract is the arithmetic average of the SCFIS on April 13th, 20th, and 27th. Investors are advised to closely follow the spot market and operate flexibly [1][5]. - The contracts for the relatively peak seasons of June, July, and August are expected to have strong performance. The reasons include the low probability of the Suez Canal's resumption in the first half of the year, the relatively small delivery pressure of ultra - large container ships in the first half of 2026, and the relatively high year - on - year growth rate of the demand side from Asia to Europe. However, the actual freight rates in the future are still uncertain, and investors need to respond flexibly [5][6]. - The Houthi armed forces in Yemen's statement about potentially blocking the Bab el - Mandeb Strait may drive up the prices of far - month contracts. The number of container ships passing through the Gulf of Aden has significantly decreased, and the blockade may impact the global supply chain and drive up global shipping rates [7]. 3. Summary According to the Directory 3.1 Futures Prices - As of March 24, 2026, the total open interest of all contracts of the container shipping index for the European route futures was 42,427.00 lots, and the single - day trading volume was 35,849.00 lots. The closing prices of EC2604, EC2605, EC2606, EC2607, EC2608, EC2609, EC2610, and EC2512 contracts were 1898.90, 2178.20, 2439.20, 2567.00, 2410.80, 1720.00, 1573.00, and 1774.00 respectively [8]. 3.2 Spot Prices - Online quotes: For example, Gemini Cooperation's Maersk Shanghai - Rotterdam WEEK14 quote was 1635/2630, and WEEK15 was 1455/2330. Different shipping companies had different quotes for different time periods. On March 20, the SCFI (Shanghai - Europe route) price was 1636 US dollars/TEU, SCFI (Shanghai - US West route) was 2054 US dollars/FEU, and SCFI (Shanghai - US East) was 2922 US dollars/FEU. On March 23, the SCFIS (Shanghai - Europe) was 1693.26 points, and SCFIS (Shanghai - US West) was 1024.11 points [1][8]. 3.3 Container Ship Capacity Supply - Static supply: As of February 28, 2026, 27 container ships with a total capacity of 174,232 TEU were delivered in 2026. The delivery pressure of ultra - large ships in 2026 is relatively small, while the annual delivery volume of ships over 17,000 + TEU in 2027, 2028, and 2029 exceeds 40 ships. Only 4 ships over 17,000 + TEU were delivered in the first half of 2026 [3]. - Dynamic supply: The average weekly capacity from China to European base ports in March was 296,500 TEU, in April was 311,900 TEU, and in May was 305,700 TEU. There were 3 TBNs and 2 blank sailings in April, and 6 TBNs in May [4]. 3.4 Supply Chain - Geopolitical factors: The US has sent a 15 - point plan to Iran through Pakistan to end the Middle East war. The scope of the plan's circulation among Iranian officials, Iran's acceptance, and Israel's support are all unclear, but it shows the US's efforts to end the war [2]. - Houthi armed forces: The Houthi armed forces in Yemen may block the Bab el - Mandeb Strait, which may impact the global supply chain and drive up shipping rates. The number of container ships passing through the Gulf of Aden has decreased significantly [7]. 3.5 Demand and European Economy - The year - on - year growth rate of the demand side from Asia to Europe is relatively high, with the container trade volume in most months having a year - on - year growth rate of over 10%. After the Israel - Iran conflict, new expectations have emerged for peak - season contracts. Attention should be paid to whether developed countries in Europe and the US will increase imports due to concerns about inflation, as well as the risk of a global economic recession caused by a large increase in oil prices [6].

Core Insights - The top-performing ETFs this year are predominantly oil-related, with the Breakwave Tanker Shipping ETF (BWET) leading with a return of approximately 450% year-to-date and around 850% over the past 12 months [2] - The surge in oil prices is attributed to geopolitical tensions, particularly the Iran war and the closure of the Strait of Hormuz, which has significantly increased trading activity in oil-related ETFs [4] ETF Performance - The top 10 ETFs by year-to-date returns have all increased by more than 50%, highlighting a strong investor interest in oil and commodities [2] - BWET has seen its assets grow nearly tenfold to about $25 million since the beginning of the year, with daily trading volumes ranging from 25% to 50% of its assets recently [4] Market Dynamics - There is a growing realization among investors of the need for exposure to energy and commodities, especially as supply chains are affected by current global events [3] - The energy and materials sectors recently constituted only 5% of the S&P 500, prompting a rush to increase exposure through sector and commodity funds [3] Volatility and Trading Characteristics - The BWET and its counterpart, the Breakwave Dry Bulk Shipping ETF (BDRY), are characterized by high volatility, which is typical for cyclical industries like shipping [4] - The ETFs have a fee structure of 3.5%, reflecting the nature of daily futures trading in a market that lacks electronic processes, with transactions often conducted over the phone [4]

Core Viewpoint - The article discusses the current challenges in the shipping industry, particularly in the Strait of Hormuz, and highlights the best shipping stocks to consider for investment according to analysts. Shipping Industry Challenges - The US Navy has denied requests from the shipping industry for vessel escorts in the Strait of Hormuz due to high attack threats, impacting traffic that carries about one-fifth of global oil supplies, leading to increased oil prices [2][3] - Iran's Revolutionary Guards have threatened to fire on ships crossing the strait, with reports of several vessels already attacked, indicating heightened risks in the region [3] Best Shipping Stocks - The article lists the 10 best shipping stocks based on analyst recommendations and hedge fund popularity, focusing on companies with recent noteworthy developments [5][6] - International Seaways, Inc. (NYSE:INSW) has been highlighted, with Deutsche Bank upgrading its price target to $80 from $63 while maintaining a Buy rating [6] - International Seaways reported a fourth-quarter net income of $128 million, with an adjusted EBITDA of $175 million, and announced a dividend of $2.15 per share [7][8] - SFL Corporation Ltd. (NYSE:SFL) secured a drilling agreement in Canada worth an estimated $170 million, with preliminary Q4 2025 results showing operating sales of $176 million [10][11]

Core Viewpoint - DHT Holdings is experiencing remarkable yield rates, with expectations for Q2 yield potentially exceeding 20% annualized, contingent on achieved rates [1]. Group 1: Company Performance - The stock of DHT Holdings does not currently reflect its strong performance metrics [1]. - The reopening of the Strait of Hormuz could further influence the company's yield rates positively [1]. Group 2: Analyst Background - The analyst has a diverse professional background across various industries, including logistics, construction, and retail, which contributes to a comprehensive investment perspective [1]. - The analyst has over a decade of active investing experience, focusing on cyclical industries while maintaining a diversified portfolio that includes bonds, commodities, and forex [1].

Core Viewpoint - The shipping industry, particularly the transport and shipping of oil and energy, is characterized by high volatility, making it a challenging area for investment analysis [1]. Group 1 - The transport and shipping of oil/energy is highlighted as one of the more volatile sectors within the shipping industry [1].

Core Insights - EuroDry Ltd. (EDRY) is experiencing positive momentum due to shareholder-friendly initiatives and strong liquidity, leading to impressive share performance [1] Financial Performance - Earnings per share (EPS) estimates have been revised upward by over 100% year over year for both the current quarter and the current year, indicating strong broker confidence [2] - Revenue estimates for the current quarter have increased by 53.3% year over year, while the 2026 revenue consensus has risen by 17.6% [3] - EDRY's shares have surged 60% over the past year, outperforming the Zacks Transportation - Shipping industry's growth of 44.6% [3][6] Industry Position - EDRY holds a Zacks Rank of 1 (Strong Buy), indicating a favorable outlook [4] - The industry rank for EuroDry is 43 out of 244, placing it in the top 18% of Zacks Industries, which is significant as industry performance heavily influences stock price movements [4] Capital Management - The company has utilized approximately $5.3 million of its $10 million share repurchase program, reflecting a disciplined approach to capital allocation [8] - EDRY's liquidity position is strong, with a current ratio of 1.53 in 2025, indicating solid financial stability and the ability to meet short-term obligations [9]