Maersk shares surge after shipping firm extends Red Sea pause, freight rates rise
Publishing timestamp: 2024-01-03 11:35:56
Summary
Maersk shares have climbed as shipping firms benefit from the ongoing disruption to global trade caused by Houthi attacks in the Red Sea. The company has decided to prolong its halt on Red Sea travel due to safety concerns, leading to an increase in freight rates. Goldman Sachs analysts have upgraded their rating on Maersk to "neutral" and expect the increase in freight rates to continue. However, the rerouting of ships along the Cape of Good Hope route means no access to Egypt's Suez canal, constraining global container capacity. The uncertainty remains despite military efforts to curb attacks. While the impact on annual contract rates is likely to be positive, there are concerns about increased transit times, worsened reliability, and potential price increases for consumers.
Sentiment: MIXED
Tickers: MAERSK.B-DK, HLAG-DE, .STOXX, DP4B-DE,
Keywords: stoxx 600, breaking news: economy, markets, economy, business news, ap moeller - maersk a/s, breaking news: markets,
Source: https://www.cnbc.com/2024/01/03/maersk-shares-gain-after-shipping-firm-extends-red-sea-pause.html