Shipping stocks are to be monitored on Monday, 18th December, after the logistics behemoth Maersk told its vessels in the Red Sea area to pause their journeys. Maersk’s actions come as a result of recent militant attacks on merchant ships in this region.
Shipping stocks rise following Red Sea attacks on merchant ships
As a result, European shipping stocks are likely to continue trading in a volatile manner due to concerns about disruptions in Red Sea routes caused by militant attacks, potentially leading to increased freight rates.
The threats near Egypt’s Suez Canal may impact rates as vessels opt for alternative, longer routes. Key players such as Moller-Maersk, Hapag-Lloyd, and ZIM Integrated Shipping will be closely watched.
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European shipping stocks saw gains after Maersk announced a pause in Red Sea voyages following recent attacks. This development, alongside major shipping lines suspending transit through the Red Sea, has also pushed oil prices higher during the market opening.
The company released a statement, saying:
Following the near-miss incident involving Maersk Gibraltar yesterday and yet another attack on a container vessel today, we have instructed all Maersk vessels in the area bound to pass through the Bab al-Mandab Strait to pause their journey until further notice.
The vessel “Maersk Gibraltar” was targeted by a missile while en route from Salalah, Oman, to Jeddah, Saudi Arabia. The crew and vessel were confirmed safe.
However, the shipping company denied the claim made by Yemen’s Houthi movement that they had struck a Maersk vessel sailing toward Israel. The Houthis asserted that they conducted a military operation, hitting a Maersk container vessel with a drone, but provided no evidence.
