The main issue is business is highly cyclical… I am working in the shipping industry for last 23 years ( presently Captain of large crude carriers ). Have seen many cycles of boom and bust in shipping… When things go downhill no one knows how long the negative sentiments will last…Shipping is an asset heavy industry with constant increasing of regulations and upgrade requirements. So if the market goes bad owners will still need to spend money to keep their fleet servicable. They will themselves not know for how long and only companies with very deep pockets survive. Have seen many big ship owners going bankrupt when times are difficult. These are possibly the reason why market do not tend to give high multiples to these earnings.
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