- Shipping stocks like TFI (TSX: TFII) and Algoma (TSX: ALC) gained increased attention after COVID lockdowns made marine shipping vital.
- Now that the pandemic seems to be a little under control, global supply channels are facing challenges once again amid the Russia-Ukraine war.
- TFII stock climbed by over 30 per cent year-over-year (YoY).
Shipping stocks like TFI International (TSX: TFII) and Algoma Central (TSX: ALC) gained increased attention after COVID-19 lockdowns made marine shipping vital to global economy.
Now that the pandemic seems to be a little under control, global supply channels are facing challenges once again amid the Russia-Ukraine war.
While such supply disruptions are worrisome, it can pave a way for investors to look back at shipping stocks. So, let us explore the two Canadian shipping stocks mentioned above.
TFI International Inc (TSX: TFII)
TFI International is a Canadian transportation company that provides logistical services across North America.
The Quebec-headquartered company reported total revenue of US$ 2.14 billion in Q4 FY2021, significantly up from US$ 1.12 billion in the same period of 2020.
Its revenue before fuel surcharge amounted to US$ 1.88 billion in the latest quarter compared to US$ 1.04 billion a year ago.
TFII stock climbed by over 30 per cent year-over-year (YoY) and closed at C$ 125.60 apiece on Friday, April 1.
Algoma Central Corporation (TSX: ALC)
Algoma Central is a marine transporter that operates on the Great Lakes.
The C$-662 million market cap firm posted a net profit of C$ 82,170 in 2021, representing a notable YoY growth of 79 per cent.
ALC stock swelled by almost seven per cent in the last six months and closed at C$ 17.53 apiece on Friday.
However, investors should also ideally note any rise in fuel costs and disruptions in the supply chain network that could create operational pressure and affect shipping businesses.