Maersk's Share Plunge Amid Hopes for Gaza Ceasefire: Impact on Shipping Routes
Maersk shares fell as investors anticipated a Gaza ceasefire might restore Red Sea routes, easing freight rates. While Israel and Hamas agreed on a plan, uncertainty remains due to no comments from the Houthis, who previously attacked shipping vessels. Analysts warn shipping companies might delay route changes.
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Maersk shares took a sharp downturn on Thursday, reaching their lowest point since July. This decline comes as investors speculated a potential ceasefire in Gaza might soon reopen container shipping routes through the Red Sea and Suez Canal, thus relieving the capacity strain that supported elevated freight rates.
The strategic deal between Israel and Hamas on Wednesday signals the first step in President Donald Trump's Gaza plan, igniting hopes that Iran-aligned Houthi forces in Yemen may halt their disruptive attacks on commercial shipping in the Red Sea. These threats have forced companies to reroute ships south of Africa since late 2023.
Despite the ceasefire developments, the Houthis have not commented on a change in their stance, maintaining tension after they claimed an attack on a Dutch-operated vessel last week. Analysts, including Sydbank's Mikkel Emil Jensen, caution that even if peace holds, it could be months before shippers confidently return to the Red Sea, affecting freight rates.
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