Activist investors are piling into Japanese shipping stocks as limited shipbuilding capacity and elevated freight rates boost the value of their fleets.
Elliott Investment Management said earlier this month that it has taken a “significant” stake in Mitsui OSK Lines, adding that “the market materially undervalues the business.” This follows a similar move by investment firm Fuel, which built a stake of about 5% in Tamai Steamship.
Vessel prices, which have been trending upward globally, driven by robust demand, inflation and limited shipbuilding capacity have also been lifting unrealized gains of shipping fleets. The war in the Middle East has also lifted freight rates. Large tankers with an age of 15 years are now valued at around $78 million — up 39% this year and are at the highest level since records began in 2013.
AloJapan.com