MILAN (Reuters) – Shipping stocks rose across European exchanges on Monday after Iranian-backed Houthi militants in Yemen stepped up attacks on vessels in the Red Sea, prompting A.P. Moller-Maersk and other freight firms to avoid the route.
Maersk rose 3.5% in early trade in Copenhagen, before paring some of those gains.
By 0857 GMT, D’Amico International Shipping, Hapag Lloyd and Hafnia gained between 3 and 4.4%. Frankfurt-listed shares in Scorpio tankers and Nordic American Tankers rose 5.6 and 8.9%, respectively.
“We believe that the decision to avoid the Red Sea route for crude/product cargoes will increase transport time and may put further upward pressure on freight rates if this condition persist,” Massimo Bonisoli, an analyst at Equita, said.
(Reporting by Danilo Masoni; Editing by Amanda Cooper)
