Hedge Funds for Shipping

We all want the ocean freight shipping industry to succeed. Every business that engages in international cargo shipping, including carriers and the freight forwarders anticipate the industry to reach new heights. In many ways, everyone in the industry has a stake in the success of the industry. However there might be some industry outsiders that are betting against the industry.
The Wall Street Journal recently reported that there are hedge funds in the business world that are essentially anticipating that the shipping freight rates will increase in the coming years. The reason for these hedge funds assuming that the prices will increase is because of the ever-changing supply and demand of the container process. Many of these hedge fund investors are assuming that there will not be enough vessels to handle the upcoming demand that the World needs. They also expect there to be more volatility in certain trade markets around the globe. If these predictions may seem like opinions, it seems that the hedge fund investors are using sources like the Baltic Dry Index, which shows the changes rates from this year. Opponents of the hedge funds will argue that the ocean freight industry is stable now.
The realty is that it can be difficult to predict the future. The industry is constantly changing with, new contracts are coming and supply levels are changing. Hopefully, rates will stabilize and everything works out for those who engage in shipping.