Shipping company shares sink on possible slowing of Red Sea hostilities
Shipping company shares are under heavy selling pressure Tuesday as investors weighted news of a possible ceasefire between Israel and Hamas, which could result in merchant vessels returning to the Red Sea and lowering freight rates. Shares in A.P. Moller-Maersk and Hapag-Lloyd , which had raised guidance along with Q1 earnings as the Red Sea conflict pushed prices up, both fell more than 6% in European afternoon trading. In early U.S. trading, ZIM Integrated Shipping -13.6%, Frontline -5.1%, Scorpio Tankers -4.4%, Torm -4.4%, Safe Bulkers -4%, Teekay Tankers -3.8%, Danaos -3.8%, Tsakos Energy Navigation -3.5%, Star Bulk Carriers -3.2%, Euronav -3%, Costamare -2.9%, International Seaways -2.8%, Nordic American Tankers -2.5%, Teekay Corp. -2.3%. A ceasefire agreement likely would lead to a reduction or complete stop of Houthi attacks on ships in the Red Sea, which could see container ships return to the key shipping lane, meaning that 4% of global fleet capacity will co