{"id":72279,"date":"2026-09-27T00:38:24","date_gmt":"2026-09-27T04:38:24","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-economic-shifts-supertanker-price-inversion-morgan-stanleys-international-pivot-and-climate-risks-in-coffee-markets\/72279\/"},"modified":"2026-09-27T00:38:24","modified_gmt":"2026-09-27T04:38:24","slug":"global-economic-shifts-supertanker-price-inversion-morgan-stanleys-international-pivot-and-climate-risks-in-coffee-markets","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-economic-shifts-supertanker-price-inversion-morgan-stanleys-international-pivot-and-climate-risks-in-coffee-markets\/72279\/","title":{"rendered":"Global Economic Shifts: Supertanker Price Inversion, Morgan Stanley\u2019s International Pivot, and Climate Risks in Coffee Markets"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Supertanker price inversion:<\/strong> Five-year-old vessels are now selling for <strong>$150 million<\/strong>, surpassing the <strong>$135 million<\/strong> average for new-builds due to immediate demand and full shipyard backlogs.<\/li>\n<li><strong>Morgan Stanley (<a href=\"\/stock\/MS\">MS<\/a>) strategy shift:<\/strong> Senior portfolio manager Andrew Slimmon is pivoting toward <strong>Japanese and European equities<\/strong>, citing superior earnings revisions compared to the U.S. market.<\/li>\n<li><strong>South Korea visa decline:<\/strong> U.S. nonimmigrant visa issuances for South Koreans fell <strong>7.95%<\/strong> in 2025, with student (F1) visas experiencing the most significant downward trend.<\/li>\n<li><strong>Indonesian coffee crisis:<\/strong> Production is forecast to drop <strong>8%<\/strong> to <strong>11.38 million bags<\/strong> for the 2026\/27 season as extreme heat and erratic rainfall patterns disrupt the &quot;bean belt.&quot;<\/li>\n<\/ul>\n<h2>Shipping Market Anomaly: Older Tankers Outprice Newbuilds<\/h2>\n<p>The global shipping market has entered a &quot;once-in-a-generation&quot; phase where the value of older supertankers has exceeded that of new-build vessels. According to data from the <em>Financial Times<\/em>, five-year-old <strong>Very Large Crude Carriers (VLCCs)<\/strong> are fetching prices upwards of <strong>$150 million<\/strong>, while new orders\u2014which face delivery delays until the end of the decade\u2014average roughly <strong>$135 million<\/strong>.<\/p>\n<p>This price inversion is driven by <em>extraordinary freight rates<\/em> in the Middle East, which have reportedly touched <strong>$1.2 million per day<\/strong> for certain routes. Shipowners are racing to secure immediate capacity to capitalize on these rates, as geopolitical disruptions in the <strong>Strait of Hormuz<\/strong> and <strong>Red Sea<\/strong> continue to tighten global vessel supply.<\/p>\n<h2>Morgan Stanley Eyes Opportunities Beyond Wall Street<\/h2>\n<p>Morgan Stanley (<a href=\"\/stock\/MS\">MS<\/a>) senior portfolio manager <strong>Andrew Slimmon<\/strong> has identified stronger growth potential in international markets as the U.S. earnings outlook faces high expectations. Speaking to <em>CNBC<\/em>, Slimmon highlighted that companies in <strong>Japan and Europe<\/strong> are seeing more frequent upward earnings revisions, particularly in the banking and defense sectors.<\/p>\n<p>While U.S. markets remain a core component of the firm&#39;s outlook, Slimmon suggests that a <em>balanced allocation across Asian and European equities<\/em> 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.<\/p>\n<h2>South Korea: Visa Declines and Tourism Deficits<\/h2>\n<p>New data from the office of Rep. <strong>Hong Kee-won<\/strong> reveals that U.S. nonimmigrant visa issuances for South Koreans dropped to <strong>68,130<\/strong> in 2025, an <strong>8%<\/strong> decline from the previous year. The drop is largely attributed to the <em>anti-immigration stance<\/em> of the second Trump administration, with student (F1) visas falling from a monthly average of <strong>1,195<\/strong> in 2024 to just <strong>273<\/strong> in early 2026.<\/p>\n<p>Simultaneously, South Korea\u2019s tourism sector swung back into a <strong>$50.3 million deficit<\/strong> in July 2026, ending a four-month streak of surpluses. Total overseas spending by South Koreans reached <strong>$2.67 billion<\/strong>, narrowly eclipsing the <strong>$2.62 billion<\/strong> spent by foreign visitors as outbound travel demand surged during the summer season.<\/p>\n<h2>Climate and Infrastructure: Coffee Yields and Bangkok Floods<\/h2>\n<p>Indonesia, the world\u2019s fifth-largest coffee producer, is struggling with <em>mounting heat stress<\/em> that threatens to permanently alter its coffee-growing regions. A report from <em>Nikkei Asia<\/em> indicates that production for the 2026\/27 market year is expected to fall to <strong>11.38 million 60-kilogram bags<\/strong>, as excessive rainfall and heat during the flowering stage have severely impacted <strong>robusta<\/strong> yields in southern Sumatra.<\/p>\n<p>In neighboring Thailand, officials in <strong>Bangkok<\/strong> are reporting that floodwaters have finally begun to subside after a disastrous 48-hour period that saw <strong>300mm of rainfall<\/strong>. The <strong>Bangkok Metropolitan Administration (BMA)<\/strong> has accelerated canal drainage efforts, though officials warn that it may take <strong>two to three days<\/strong> for all major roads to be cleared if no further rain falls.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Supertanker price inversion: Five-year-old vessels are now selling for $150 million, surpassing the $135 million average for new-builds 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