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The approval of a second bailout for Greece on Tuesday will bode well for Asian shipping companies, according to one analyst, who points out that Asian container shippers have a large amount of business with Europe.
“About 30 percent of container shipping revenue and about 30 percent of revenue for Chinese ports is directly attributable to Europe. So any sort of solution or signs that they are getting closer to a long-term solution in Europe is certainly good for those names." Jonathan Windham, Director & Head of Regional Industrials, Asia Ex-Japan Research at Barclays Capital told CNBC on Tuesday.
Windham says container shipping companies, ports and shipyards have "rallied massively," since October, when investors were extremely bearish on Europe and the global economy. But he says the stocks are still relatively cheap.
"In October, investors were falling over themselves on who could be more negative on how this thing would work out in Europe, and really what's happened is Europe hasn't fallen into the Atlantic into the end of the year," Windham said. "You've got the stocks rallying significantly. Most of them are still trading quite cheaply relative to long term averages."
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