The world’s shipping industry has been beaten hard over the past six months. But news reports out this week are proving the sector may be on the rise. Excel Maritime (NYSE:EXM) surprised analysts today. Who’s next?

We are just a few hours away from the start of a holiday weekend. Along with about 50 million other Americans, I am headed to the beach. Not only will it be a great opportunity to spend a few days with my family, it will be a shot at an accurate gauge of the nation’s economy.

In case you did not know, I have spent many, many days plying the nation’s offshore waters in search of anything with fins. It just so happens some of the best fishing grounds are smack dab in the middle of the shipping lanes that point to Philadelphia.

One of my time-killing tactics between bites is to study the shipping traffic coming in and out of the area. There are oil tankers, barges filled with cars and trailers, bulk carriers and an occasional cruise ship or two.

This weekend will be an excellent opportunity to scope out what the nation’s importers and exporters are up to.

If recent reports are accurate and prove to be the start of a long-term trend, there is a good chance I will see a surprisingly high amount of traffic. Rumor has it, the port of San Diego is seeing a strong surge in export traffic. As Asian economies rebound, they need more of our scrap metal, plastics and agricultural commodities.

If you have followed the world’s shipping industry lately, you know the markets have been quite bearish. Shipping lines, with their huge fixed costs and debt loads, have been hit extremely hard as the global economy was flushed out to sea.

A rising tide

But reports today from Excel Maritime (NYSE:EXM) show the bears may be coming on a bit too strong. The company surprised analysts this morning with a quarterly earnings figure of $118 million, well above last year’s Q1 figure of $35.1 million.

Analysts were expecting a per share profit of nine cents. It is no wonder shares are surging today after Excel unveiled a figure of $0.95 per share.

Granted, much of the company’s revenue can be attributed to sound fiscal management, like strong charter contracts and a favorable hedging through swaps. Even so, the news proves that the sector’s bearishness is overdone.

For investors in companies like DryShips (NASDAQ:DRYS), which is trading in negative territory on news of share dilution, today’s action is creating a buying opportunity.

As the credit markets open and the world begins manufacturing and shipping goods once again, the shipping industry will turnaround.

They say a rising tide lifts all ships. It could not be truer for this industry.

If I had to pick just one industry to invest in right now, the shipping industry would be high on my list. I will let you know if my outlook changes next week after taking a first-hand look at the nation’s seas.

Source: Excel Maritime (NYSE:EXM): A Rising Tide Lifts All Ships