Egyptian authorities held Mohammed Aisha for nearly four years on a rotting cargo ship... Aisha served aboard the 4,000-tonne MV Aman. The authorities took control of the ship in July 2017 due to expired safety equipment and certifications.
A Globally Critical Industry Is Still Strong
By Marc Chaikin, founder, Chaikin Analytics
Egyptian authorities held Mohammed Aisha for nearly four years on a rotting cargo ship...
Aisha served aboard the 4,000-tonne MV Aman. The authorities took control of the ship in July 2017 due to expired safety equipment and certifications.
In theory, the vessel's owners just needed to update the equipment and paperwork. But the ship's operators didn't refuel the ship. And the owners of the MV Aman couldn't fund the necessary updates.
Put simply, the crew of the MV Aman had to fend for itself.
The captain of the ship had Egyptian citizenship and went ashore. That left a local court to declare Aisha the "legal guardian" of the MV Aman.
Folks, that meant Aisha needed to remain on board the MV Aman until the legal system figured out what to do with the ship.
One by one, Aisha watched his crewmates leave the ship and return home.
The MV Aman had no power, no running water, and no food. Aisha had to swim to shore to buy food and charge his phone.
Aisha spent each excruciating day on that ship alone. During Aisha's stint on the MV Aman, he watched ships come and go from the Suez Canal.
Many of you will remember what happened in the Suez Canal in early 2021... Well, Aisha saw firsthand the blockage caused by the Ever Given incident.
Thankfully, a month after that accident, Aisha's guardianship of the MV Aman ended. And soon after, he flew home to his family.
Aisha was home, but the effects of his long imprisonment – as he puts it – will linger.
Likewise, repercussions from the Ever Given accident in the Suez Canal lasted long past the incident...
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The World's Precarious Marine Shipping Network
To recap, on March 23, 2021, the crew of the Ever Given eased the cargo ship up to the Suez Canal. As the ship started to move through the narrow southern portion of the canal, disaster struck.
A sudden dust storm took the crew by surprise.
This storm reduced visibility on the ship. And it wasn't long before the wind proved difficult for the captain to fight...
These strong winds nudged the Ever Given off its path. Soon, the Ever Given's bow wedged itself into the soft sand on the edge of the canal.
The ship swung across the canal and instantly blocked both lanes of traffic. Fifteen ships sat waiting to cross the canal at the time.
The Suez Canal is a man-made waterway that connects the Red Sea to the Mediterranean Sea. That makes it a critical naval route for trade.
At the time of the Ever Given incident, 12% of global trade flowed through the Suez Canal. The stuck vessel itself carried more than 18,000 containers. And within two days, there were 150 ships waiting for the blockage to clear.
It took six days to refloat the Ever Given. Egyptian authorities immediately took the ship into custody after it was dislodged.
The Suez Canal Authority initially demanded that the Ever Given's owners pay $900 million for the debacle. Until the owners paid the fine, the ship and crew couldn't leave Egypt...
Eventually, the two parties agreed to an undisclosed settlement. The crew of the Ever Given docked in the Netherlands 128 days after it gummed up global trade.
Many of us take global trade for granted. We don't think about the process it takes for our everyday goods to arrive at the store.
It takes a mistake of epic proportions, like the Ever Given accident, to call our attention to how fragile this network of ports really is...
We've seen it recently with the Iran war as well. Iran's control of the Strait of Hormuz chokes worldwide energy markets. And the Houthis' recent attacks on the Bab el Mandeb Strait threaten to amplify this stranglehold.
These events remind us that our lives rely on the marine transportation industry.
But remarkably... there are still zero "bearish" or worse stocks...
Naturally, the Power Gauge sees the marine transportation industry as strong. And any of those 17 "bullish" stocks are worth a closer look in the Power Gauge today.
Good investing,
Marc Chaikin
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
-0.84%
7
13
10
S&P 500
-0.21%
69
244
184
NASDAQ
+0.25%
25
45
29
Small Caps
-0.40%
311
1134
449
Bonds
-0.58%
Systems Software
+1.17%
80
45
6
— According to the Chaikin Power Bar, Large Cap stocks are more Bearish than Small Cap stocks. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Information Technology
+0.21%
Health Care
-0.23%
Utilities
-0.78%
Energy
-1.39%
Communication
-1.41%
Discretionary
-1.64%
Industrials
-1.83%
Financial
-2.09%
Real Estate
-2.22%
Staples
-2.22%
Materials
-3.14%
* * * *
Industry Focus
Dow Jones REIT
5
46
44
Over the past 6 months, the Dow Jones REIT subsector (RWR) has underperformed the S&P 500 by 15.34%. Its Power Bar ratio which measures future potential is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #18 of 21 subsectors and has moved up 1 slots over the past week.
Indicative Stocks
ADC
Agree Realty Corporation
BNL
Broadstone Net Lease, Inc.
COLD
Americold Realty Trust, Inc.
* * * *
Top Movers
Gainers
GEN
+5.61%
CBOE
+5.17%
SNPS
+4.78%
HPE
+3.90%
FDS
+3.84%
Losers
JBL
-10.03%
MRNA
-5.35%
APP
-4.98%
GIS
-4.91%
GM
-4.31%
* * * *
Earnings report
Earnings Surprises
CALM Cal-Maine Foods, Inc.
Q1
$-1.24
Missed by $-0.48
CAG Conagra Brands, Inc.
Q1
$0.41
Beat by $0.13
JBL Jabil Inc.
Q4
$4.40
Beat by $0.32
MU Micron Technology, Inc.
Q4
$33.42
Beat by $1.60
FDS FactSet Research Systems Inc.
Q4
$4.52
Beat by $0.17
* * * *
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