The rise in Houthi attacks in the Red Sea has brought increased attention to the share prices of shipping companies and port operators. Although the shares of Shipping Corporation of India and Great Eastern Shipping Company rebounded after a correction, analysts remain cautious. The ongoing disruptions in the Red Sea, stemming from the Israel-Hamas Conflict since October 7th, have led to attacks on merchant ships, prompting shipping companies and oil industry giants to temporarily halt shipping through the region. Analysts express concerns about potential global supply-chain disruptions and rising shipping rates. While some experts believe the situation could lead to a short-term challenge, others anticipate Western countries to address the Houthi attacks in the Red Sea. The Suez Canal-Red Sea route constitutes a significant portion of global trade, and any impact on shipping rates is expected to be temporary, with no significant long-term effects on shipping stocks or inflation trajectory, according to analysts.

SOURCE:GOOGLE