Shippers edge higher after US, UK strikes in Yemen

Evergreen Marine Taiwan

12/01/2024 09:53

** Shares in European and Asian shipping firms edge higher
after overnight strikes against Houthi military targets in Yemen
by the U.S. and Britain, but analysts warn a swift solution
could be less likely
    ** Hapag Lloyd  HLAG.DE  rises as much as 4.8% and Maersk
 MAERSKb.CO  as much as 3.8%, before both pare gains to trade
2.1% and 0.8% higher respectively
    ** Asian shipping groups Evergreen  2603.TW , HMM
 011200.KS  and Yang Ming Marine Transport Corp  2609.TW  rise
around 5%
    ** DNB Markets analyst Jorgen Lian sees upside risks for
segments that have so far been less affected by the situation,
such as tankers
    ** Norwegian tanker shippers Frontline  FRO.OL  and Hafnia
 HAFNI.OL  gain 4.7% and 3.7% respectively
    ** "There are perhaps stronger arguments that this could be
a lasting situation as any peaceful and swift diplomatic
solution now seems less likely," Lian adds, however
    ** "It is likely that Houthi retaliate and step up attacks
which makes passage of the Red Sea even more unsafe for
container vessels in the short term," an analyst, who asked not
to be named, told Reuters
    ** The intensifying conflict in the Middle East could affect
some sectors in Europe, among which are shipping companies that
have already benefitted from higher freight costs after vessels
diverted away from the Red Sea

 (Reporting by Paolo Laudani and Jagoda Darłak)
 ((Paolo.Laudani@thomsonreuters.com;
jagoda.darlak@thomsonreuters.com))