A hurricane season is when many storms called hurricanes happen in a year. This article says that this year, there might be more hurricanes than usual. When this happens, big ships that carry things from one place to another might not be able to do their job because of the storms. The people who own these ships and the people who need their help can get very upset with each other. This is called "carrier revenge". It's like when you're mad at someone for taking your toy without asking, so you don't share your candy with them. Read from source...
- The title is misleading and sensationalized. It should be something like "How an extreme hurricane season could affect the shipping industry" instead of implying a revenge motive from carriers.
The article discusses the potential impact of an extreme hurricane season on shipping, freight, and related industries. It suggests that carriers may seek revenge by raising prices or imposing other penalties on shippers who have been negligent in their contracts. This could lead to increased costs and disruptions for manufacturers, retailers, and consumers. Some of the potential investment recommendations are:
- Buy stocks of companies that provide essential goods or services that are in high demand during hurricane season, such as water, food, medicines, generators, etc. These companies may benefit from increased sales and market share as other competitors struggle with supply chain issues.
- Sell or short stocks of companies that rely heavily on shipping and freight, especially those that have weak contracts or poor relations with carriers. These companies may face losses and lower profit margins due to higher transportation costs and delays in delivery. Some examples are apparel, electronics, auto parts, etc.
- Buy or hold stocks of companies that offer innovative solutions for tracking, monitoring, or insuring cargo during hurricane season. These companies may gain more customers and revenue as shippers seek to mitigate the risks of damage or loss caused by extreme weather events. Some examples are satellite communications, IoT devices, cybersecurity, etc.
- Buy or hold stocks of companies that have strong financials and diversified operations across different sectors and regions. These companies may be able to withstand the impact of hurricane season better than their peers, as they have more flexibility and resilience in adjusting to changing market conditions. Some examples are utilities, energy, healthcare, etc.