Shipping companies slide as return to Suez Canal might trigger freight rates correction

Hoegh Autoliners ASA

27/12/2023 09:32

** Shares in container shipping companies Maersk
 MAERSKb.CO  and Hapag Lloyd  HLAG.DE  fall about 5%, with
Norndet analyst Per Hansen pointing to news of expected
resumption of transit via Suez Canal
    ** In response to Houthi attacks, over the past two weeks
some shippers started avoiding the Red Sea and move to longer,
costlier Southern African routes, disrupting global trade and
creating upside risks to freight rates 
    ** Talks of resuming transit via Red Sea assisted by the US
navy means rates might come down again rather quickly, Hansen
says
    ** He adds that US oil tankers have already adjusted their
positions in response to the news
    ** Nordic shipping companies Frontline  FRO.OL , Hoegh
Autoliners  HAUTO.OL , Wallenius Wilhelmsen  WAWI.OL  and Hafnia
 HAFNI.OL  fall between 1.8% and 5.5% in morning trade

    

 (Reporting by Jesus Calero)
 ((Jesus.calero@thomsonreuters.com))