MB Capital Strategies Glossary — Updated June 2026
A shipping cluster groups shipping companies by the type of freight they carry: crude tankers, product tankers, dry bulk, LNG carriers, LPG gas carriers, and container ships. Each cluster operates in a separate freight market with its own supply/demand dynamics and dividend cycle.
Understanding the cluster structure is essential for shipping stock investors — because allocating to the right cluster at the right point in the freight cycle is the primary driver of returns.
| Cluster | Cargo | Key Stocks | Dividend Type |
|---|---|---|---|
| Crude Tanker | Crude oil | TORM, Frontline, DHT, Hafnia, CMB.Tech | Variable (spot-linked) |
| Product Tanker | Refined fuels | TORM, Ardmore, Nordic Tankers | Variable (spot-linked) |
| LNG Carrier | Liquefied natural gas | FLEX LNG, Golar LNG, New Fortress Energy | Fixed/semi-fixed (TC) |
| LPG / Gas Carrier | Propane, butane, ammonia | Dorian LPG, BW LPG, Avance Gas | Variable/fixed |
| Dry Bulk | Coal, iron ore, grain | Star Bulk, Safe Bulkers, Pacific Basin | Variable |
This is the most important insight for multi-cluster investors: different shipping clusters peak at different times. Crude tanker rates peaked in 2022-2024 on Russia sanctions. LNG rates peaked in 2022 on European gas crisis. Dry bulk peaked in 2021 on pandemic trade disruptions. Container peaked in 2021-2022 on port congestion.
By rotating capital across clusters based on supply/demand fundamentals, investors can capture multiple dividend cycles rather than riding a single cluster from peak to trough.
For each cluster, the key metrics are:
1. Orderbook-to-fleet ratio: Low (<8%) = favorable supply. Source: Clarkson Research, VesselsValue.
2. Fleet age profile: Older fleet = more scrapping expected = tighter supply ahead.
3. Demand growth: Trade route changes, commodity demand, ton-mile shifts.
4. Current spot vs. long-run average: Is the market above or below the cycle mid-point?
A diversified shipping portfolio might hold 2-3 clusters simultaneously. Example allocation for yield focus: 50% crude/product tankers (variable high yield), 30% LNG (stable TC-backed income), 20% LPG (growth via ammonia carrier conversion). This combination provides both current income and exposure to the energy transition timeline.
Tanker · TCE Rate · Charter Rates · VLCC · VLGC · Freight Rates · Spot Market
About Marco Bozem · Full Glossary · Best Tanker Stocks 2026
Marco Bozem
Investor & Analyst | Hard Assets, Dividends, Shipping | MB Capital Strategies
Marco analyzes commodity and dividend stocks with focus on Shipping, Mining, and Energy. All analysis is based on publicly available reports and personal judgment. Not investment advice.