Hello from a sunny Copenhagen where the Euro 24 fever is upon us all. This week we’ll do a chart heavy analysis on shipping and nat gas. We were stopped out of our long position in shipping in February due to false reports on a deal with the Houthis that sent the market tanking. Then we warned about a second wave but didn’t trade it and now we are starting to ponder if it’s time to sell the shipping companies. We find a few reasons for that. 

Firstly is the beginning slowdown in price increases in freight rates across the globe. This week we printed at 1.79 % w/w in sharp contrast to the > 5 % we have had over the last month. It seems like markets are starting to sniff out the weakness as well. Looking at the BOAT ETF we are currently down almost 9% from the late May peak. 

Chart 1.a: Are we starting to see a slow down in freight rates? 

Chart 1.b: Still elevated prices

Chart 1.c: Are markets starting to sniff it out?