Shares in European shipping companies climbed on Monday as escalating Middle East tensions forced major carriers to reroute vessels, tightening global shipping capacity and fueling expectations of higher freight rates.
Maersk shares rose 7%, reaching their highest level since March 2, 2023, while Hapag-Lloyd gained 4%.
On Sunday, Maersk, Hapag-Lloyd and CMA CGM began rerouting ships around Africa, avoiding the Suez Canal and Bab el-Mandeb following U.S. and Israeli strikes on Iran and the closure of the Strait of Hormuz.
Both Maersk and Hapag-Lloyd announced they were suspending all vessel crossings in the Strait of Hormuz until further notice.
Brokerages said further disruption is likely to push freight rates higher alongside rising oil prices.
Nordic tanker companies also saw gains, with Copenhagen-listed Torm and Oslo-listed Frontline up 5%.
Norwegian RoRo shipper Hoegh Autoliners rose 3.6%.
Source: Investing.com
