Contents
Investment summary
3
1. Shipping sector investment strategy
6
2. Valuation
11
3. Container shipping
3-1. Supply and demand
Demand side
Supply side
3-2. Container freight rates
Recovery signal : freight rate hikes vs. shipping volume rebounds
: which comes first?
Freight rates by route
17
4. Bulker shipping
4-1. Supply and demand
Demand side
Bulker supply
4-2. BDI (Baltic Dry Index) forecast
BDI trend
BDI forecast
29
5. Restructuring - a prerequisite for shipping industry recovery
Restructuring efforts
38
6. Shipping company earnings review and forecasts
Major assumptions
43
Company analysis
Hanjin Shipping (000700 KS, HOLD, fair value of W27,000)
Hyundai Merchant Marine (011200 KS, HOLD, fair value of W26,000)
STX Pan Ocean (028670 KS, HOLD, fair value of W12,000)
46
49
52