The Shipping ETF Is Seeing Higher Demand As The Outlook For Exports From The U.S. Increases

“So far this year, the Claymore/Delta Global Shipping (SEA) has outperformed the broader market by a wide margin, and there is reason to believe that its winning streak will continue. Year to date, the ETF is up 14.8%, while the S&P 500 has risen only 4.5%. The world economy is coming out of recession, and the U.S. is finding that there is strong demand for its exports. Increased bilateral trade will be good for shippers because it means they can charge for cargo when their ships leave the U.S. and not just for U.S.-bound imports,” Don Dion Reports From The Street.
 
Dion goes on to say, “Many exporters are struggling with delays because there are too few ships in American ports, and this will give the shipping industry an opportunity to reduce its idle capacity. During the recession, companies put ships on standby, reducing capacity, in the same way that airlines reduce flights when passenger demand is lower. The result was that in 2009, about 500 ships, or 11% of the total shipping industry’s capacity, was idle. If these companies can step up to meet the new demand for export shipping from the U.S., it will mean greater profits and better earnings for the components of (SEA).”

“The trend of increasing exports from the U.S. will also enjoy support from the government, as the Obama administration has voiced support for a reduction in America’s trade deficit. It is not only the export picture from the U.S. that is improving. Importers to America have also reported that there has been difficulty in securing cargo space for shipments, meaning that a shipping recovery is proceeding due to increasing consumption that will only get stronger as unemployment decreases in the U.S.,” Dion Reports.

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Here are some more details on the Claymore/Delta Global Shipping ETF (SEA):

The investment (SEA) seeks to track the price and yield performance, before fees and expenses, of the Delta Global Shipping index. The fund invests at least 90% of total assets in common stock, American depositary receipts (“ADRs”), global depositary receipts(“GDRs”) and master limited partnerships (“MLPs”) that comprise the index and investments that have economic characteristics that are substantially identical to the economic characteristics of the component securities that comprise the index. It is nondiversified.

FUND HOLDINGS
as of 3/16/10
 
NAME SYMBOL WEIGHTING
TEEKAY TANK-CL A (TNK ) 4.91 %
SHIP FINANCE INTERNATIONAL LTD (SFL ) 4.80 %
MITSUI O.S.K. LINES LTD (9104 ) 4.10 %
TEEKAY LNG PARTNERS (TGP ) 4.07 %
NIPPON YUSEN KK (9101 ) 4.06 %
NAVIOS MARITIME PARTNERS (NMM ) 4.03 %
GENERAL MARITIME CORP. (GMR ) 3.88 %
SEASPAN CORP (SSW ) 3.84 %
D/S NORDEN (DNOR ) 3.76 %
EURONAV NV (EURN)  3.69 %
COSCO CORP SINGAPORE LTD (COS ) 3.66 %
OVERSEAS SHIPHOLDING GROUP (OSG ) 3.65 %
ORIENT OVERSEAS INTERNATI (316 ) 3.55 %
PACIFIC BASIN SHIPPING LT (2343)  3.50 %
TEEKAY SHIPPING CORP (TK ) 3.50 %
A P MOLLER – MAERSK A/S (MAERSKB)  3.38 %
FRONTLINE LTD (FRO ) 3.32 %
NAVIOS MARITIME HOLDINGS (NM ) 3.31 %
CHINA SHIPPING DEVELOPMENT (1138.HK)  3.29 %
CHINA COSCO HOLDINGS-H (1919 ) 3.24 %
TSAKOS ENERGY NAVIGATION (TNP ) 3.18 %
KAWASAKI KISEN KAISHA LTD (9107 ) 3.16 %
NEPTUNE ORIENT LINES LTD (NOL ) 2.78 %
CHINA SHIPPING CONTAINER (2866 ) 2.54 %
GOLDEN OCEAN GROUP LTD (GOGL ) 2.31 %
EAGLE BULK SHIPPING INC (EGLE ) 2.27 %
DRYSHIPS INC (DRYS ) 2.11 %
DIANA SHIPPING INC (DSX ) 2.09 %
EXCEL MARITIME CARRIERS (EXM ) 2.03 %
GENCO SHIPPING & TRADING (GNK ) 1.98 %
DANISH KRONE   0.00 %

 

Chart for Claymore/Delta Global Shipping (SEA)

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