Insights Now Alternative Realities: Shipping's geopolitical hedge
Jul 11, 2025
Andy Dacy, Head of the Global Transportation Group at J.P. Morgan Asset Management, draws from his 30+ years in the field to discuss current trade disruptions and their effects on transportation. He highlights how shipping patterns are adjusting due to geopolitical events and the potential revival of U.S. shipbuilding. Dacy offers insights into navigating investments amid volatility and the influence of U.S. tariff policies on global trade dynamics. Furthermore, he addresses challenges with the Jones Act and the opportunities available in the expansive transportation market.
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Andy Dacy's Shipping Origin Story
- Andy Dacy stumbled into shipping but found it perfectly matched his passion for international trade.
- His background in Chinese economics and global exposure shaped his successful transportation career.
Long-Term Leasing Mitigates Volatility
- Long-term leases on transportation assets smooth out volatility and ensure predictable cash flow.
- Leasing to investment-grade counterparties acts as a shock absorber against market fluctuations.
Shipping as a Geopolitical Hedge
- Geopolitical events cause shipping routes to change, lengthening travel and pushing up shipping rates.
- Shipping acts as a geopolitical hedge by adapting to these disruptions and dislocations globally.