Shipping stocks in Europe experienced significant gains as A.P. Moller-Maersk and other major freight companies suspended journeys through the Suez Canal due to recent attacks on vessels in the Red Sea by Houthi militants in Yemen. Traders anticipate that a prolonged disruption to the crucial route could lead to increased shipping rates. Maersk shares rose up to 4.7%, and other companies, including D’Amico, Hapag Lloyd, and Hafnia, saw gains between 4% and 7%. Oil major BP also temporarily halted transits through the Red Sea, citing security concerns. Analysts suggest that avoiding the Red Sea route may elevate transport times, potentially raising freight rates. Jefferies highlights the importance of the Suez Canal in global seaborne trade, predicting stronger rates in various shipping segments in the near term. Maersk, MSC, and CMA CGM have temporarily suspended container shipments through the Red Sea.

SOURCE:GOOGLE