Morgan Stanley names stocks that will win as global shipping industry bounces back

Shipping delays are causing a scramble for containers
Shipping delays are causing a scramble for containers

High demand for shipping containers has created a "sweet spot" for the industry, according to analysts at Morgan Stanley, who expect three stocks in particular to fare well.

The sector is emerging from one of the longest downturns in its history and demand is set to grow 7.7% year-on-year in 2021, the bank estimated. It comes after the shipping industry was hit hard by the blockage in the Suez Canal — which at its peak saw around $9 billion worth of goods delayed every day — leading to a continued backlog in orders.

One significant cost facing the industry is the investment required to tackle climate change, the Morgan Stanley analysts warned. But low-emission fuel technology and infrastructure are still "a few years away," they wrote, and in the meantime several firms are well-placed to benefit from rising demand.

Morgan Stanley said these shipping stocks are set to benefit: