Shipping stocks rise as companies reroute vessels after Red Sea attacks

Safe Bulkers

18/12/2023 13:49

** U.S.-listed shares of shipping companies rise premarket
    ** Companies divert their ships away from the Red Sea amid
attacks from Iranian-backed Houthi militants in Yemen
    ** A Norwegian-owned vessel was attacked in the Red Sea on
Monday in a strike that U.S. officials said originated from
Yemeni territory controlled by the Iran-aligned movement
    ** European oil major BP  BP.L , French shipping company CMA
CGM  CMACG.UL  and Taiwanese container shipping line Evergreen
 2603.TW  were amongst firms who notified that they would be
avoiding sailing through the Red Sea  urn:newsml:reuters.com:*:nL8N3DD25G
    ** "We see upside across most segments given the risk of
tighter capacity, at least for a period until passage through
the Red Sea becomes safer" - brokerage Jefferies
    ** Notes containers have the biggest upside, given the
potential for a severe tightening of capacity    
    ** Nordic American Tankers  NAT.N , Scorpio Tankers
 STNG.N , DHT Holdings  DHT.N , Golden Ocean Group  GOGL.O ,
Safe Bulkers  SB.N  and Teekay Tankers  TNK.N  up between 1.5%
and 5.1%
    ** U.S.-listed shares of Zim Integrated Shipping Services
 ZIM.N  and TORM  TRMD.O  rise 4.3% and 3.2%, respectively
    ** SonicShares Global Shipping ETF  BOAT.P , which tracks
the water transportation industry, advances 3.6%

 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com;))