U.S. Markets close in 6 hrs 4 mins

Shipping Stocks Up On Increased Demand, Low Oil Costs

Kevin Riley

Global shipping company stocks have seen significant upside in recent days on a combination of lower oil prices and increased freight demand.

Frontline Ltd. (NYSE: FRO) shares have been one of the big winners, closing Monday at $2.86, up 27.5 percent and up approximately 114 percent since December 9.

Some of the increased demand appears to be coming from China amid stockpiling of low-priced crude oil, according to a Bloomberg report.

Bloomberg noted that the “cost of hiring the vessels surged to the highest in almost five years,” based on Baltic Exchange data.

Other stocks to watch include Nordic American Offshore Ltd (NYSE: NAO), which closed at $11.88, up 6.64 percent.

TOP SHIPS Inc (NASDAQ: TOPS) has not fared as well as others and fell 4.7 percent to $1.22, while Nordic American Tanker Ltd (NYSE: NAT) surged 2.05 percent to $9.45.

Teekay Tankers Ltd. (NYSE: TNK) has also benefited from the trend and closed at $5.62, up 5.05 percent, along with DHT Holdings Inc (NYSE: DHT), which closed at $7.02, up 5.72 percent.

See more from Benzinga

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.