Mark Chubb, Chairman at TEAM plc, draws attention to a persistent gap in how investors think about the global economy. While financial commentary tends to focus on interest rates, valuations and market sentiment, the physical system that enables global trade remains largely overlooked.
Around 80% of world trade by volume moves by sea. Energy, food, raw materials and manufactured goods all depend on maritime routes to reach their destinations. Despite this, shipping and its supporting infrastructure rarely feature prominently in investment discussions.
At those moments, geography becomes critical. Key chokepoints such as the Strait of Hormuz, the Strait of Malacca, the Bab el-Mandeb Strait and the Suez Canal carry a substantial share of global trade. Any interruption along these routes can quickly affect energy flows, supply chains and pricing.
Chubb highlights a structural feature of the shipping industry that helps explain its limited appeal to investors. A single container ship can carry cargo worth hundreds of millions, sometimes more than a billion dollars. However, the revenue earned from transporting that cargo represents only a small proportion of its value. Shipping enables global trade but captures relatively little of the economic upside.
This dynamic positions shipping as infrastructure rather than a high-margin business. The sector has historically delivered uneven returns, shaped by high capital requirements, cyclical supply dynamics and intense competition. New vessels are often commissioned during periods of strong demand, only to enter service as market conditions weaken. At the same time, the largely interchangeable nature of ships limits pricing power.
These characteristics have contributed to a consistent underweighting of maritime exposure in portfolios. Capital tends to flow instead towards sectors perceived as offering stronger growth or more stable returns. In practice, this means that businesses directly responsible for moving the global economy are often less represented than those operating further along the value chain.
Mark’s perspective suggests that the more durable investment opportunities may sit around shipping rather than within it. Port operators occupy strategic positions as gateways to trade, benefiting from steady throughput and high barriers to entry. Logistics companies add value through coordination, information and integration across supply chains. In energy markets, tanker and LNG operators introduce an additional layer of relevance through their exposure to geopolitical flows and resource distribution.
TEAM plc (LON:TEAM) is building a new wealth, asset management and complementary financial services group. With a focus on the UK, Crown Dependencies and International Finance Centres, the strategy is to build local businesses of scale around TEAM’s core skill of providing investment management services.
