NEW YORK (TheStreet) -- The S&P 500 lost roughly 10% in the recent selloff which was sparked by fears of a global economic slowdown.
While that selloff seemed bad for the broader market, maritime stocks were hit even harder including Global Ship Lease (GSL) - Get Report which is still down 20% over the past month, despite recovering 6.6% in the past five days.
The shipping stock selloff was likely due to fear of a slowdown in global trade, suggested Global Ship Lease CEO Ian Webber. He added that all of GSL's vessels are on fixed rate contracts and are unaffected by short term economic swings, a factor worried investors may not have taken into account or understood.
Fortunately, the company's "underlying business fundamentals remain solid," Weber explained. The company just added another ship to its fleet, bringing its total ship count to 18.
As the company's fleet grows larger, it allows Global Ship Lease to diversify its customer base.
As for the holiday season, Webber says the shipments have already arrived. The busiest routes include Asia to Europe and Asia to the U.S., as well as intra-Asian shipments.
The $162 million market cap company not only experiences economic cyclicality but also seasonality. Shipments are the strongest in the summer and fall, and weakest in the winter and early spring, Webber concluded.
In separate shipping industry news, FedEx (FDX) - Get Report said it expects holiday shipment volumes to climb 8.8% year-over-year, to 290 million units. This suggests that the holiday season may be stronger than previously anticipated.