Key Takeaways
- Supertanker price inversion: Five-year-old vessels are now selling for $150 million, surpassing the $135 million average for new-builds due to immediate demand and full shipyard backlogs.
- Morgan Stanley (MS) strategy shift: Senior portfolio manager Andrew Slimmon is pivoting toward Japanese and European equities, citing superior earnings revisions compared to the U.S. market.
- South Korea visa decline: U.S. nonimmigrant visa issuances for South Koreans fell 7.95% in 2025, with student (F1) visas experiencing the most significant downward trend.
- Indonesian coffee crisis: Production is forecast to drop 8% to 11.38 million bags for the 2026/27 season as extreme heat and erratic rainfall patterns disrupt the "bean belt."
Shipping Market Anomaly: Older Tankers Outprice Newbuilds
The global shipping market has entered a "once-in-a-generation" phase where the value of older supertankers has exceeded that of new-build vessels. According to data from the Financial Times, five-year-old Very Large Crude Carriers (VLCCs) are fetching prices upwards of $150 million, while new orders—which face delivery delays until the end of the decade—average roughly $135 million.
This price inversion is driven by extraordinary freight rates in the Middle East, which have reportedly touched $1.2 million per day for certain routes. Shipowners are racing to secure immediate capacity to capitalize on these rates, as geopolitical disruptions in the Strait of Hormuz and Red Sea continue to tighten global vessel supply.
Morgan Stanley Eyes Opportunities Beyond Wall Street
Morgan Stanley (MS) senior portfolio manager Andrew Slimmon has identified stronger growth potential in international markets as the U.S. earnings outlook faces high expectations. Speaking to CNBC, Slimmon highlighted that companies in Japan and Europe are seeing more frequent upward earnings revisions, particularly in the banking and defense sectors.
While U.S. markets remain a core component of the firm's outlook, Slimmon suggests that a balanced allocation across Asian and European equities may outperform a U.S.-centric portfolio in late 2026. He noted that the current market breadth in the U.S. remains narrow, whereas international markets are showing signs of a broader recovery.
South Korea: Visa Declines and Tourism Deficits
New data from the office of Rep. Hong Kee-won reveals that U.S. nonimmigrant visa issuances for South Koreans dropped to 68,130 in 2025, an 8% decline from the previous year. The drop is largely attributed to the anti-immigration stance of the second Trump administration, with student (F1) visas falling from a monthly average of 1,195 in 2024 to just 273 in early 2026.
Simultaneously, South Korea’s tourism sector swung back into a $50.3 million deficit in July 2026, ending a four-month streak of surpluses. Total overseas spending by South Koreans reached $2.67 billion, narrowly eclipsing the $2.62 billion spent by foreign visitors as outbound travel demand surged during the summer season.
Climate and Infrastructure: Coffee Yields and Bangkok Floods
Indonesia, the world’s fifth-largest coffee producer, is struggling with mounting heat stress that threatens to permanently alter its coffee-growing regions. A report from Nikkei Asia indicates that production for the 2026/27 market year is expected to fall to 11.38 million 60-kilogram bags, as excessive rainfall and heat during the flowering stage have severely impacted robusta yields in southern Sumatra.
In neighboring Thailand, officials in Bangkok are reporting that floodwaters have finally begun to subside after a disastrous 48-hour period that saw 300mm of rainfall. The Bangkok Metropolitan Administration (BMA) has accelerated canal drainage efforts, though officials warn that it may take two to three days for all major roads to be cleared if no further rain falls.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.