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Shipping stocks battered after US port strike ends

Published 10/03/2024, 10:30 PM
Updated 10/04/2024, 03:55 AM
© Reuters. Containers are stacked at the Portsmouth Marine Terminal (PMT), as port workers from the International Longshoremen's Association (ILA) participate in a strike, in Portsmouth, Virginia, U.S., October 2, 2024. REUTERS/Jose Luis Gonzalez
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SEOUL/LONDON (Reuters) -Shares in shipping companies fell heavily in Europe and Asia on Friday after workers and U.S. port operators agreed a deal to end a strike on the East and Gulf coast docks far sooner than expected.

In early trading in Europe, shipping group A.P. Moeller-Maersk fell 7.7% to the bottom of the STOXX 600, while Hapag-Lloyd was down 12.4%.

Switzerland's Kuehne und Nagel was down 1.8%.

Evergreen Marine, Wan Hai Lines and Yang Ming Marine in Taiwan fell between 8.8% and 10% in their heaviest drops for several months.

© Reuters. Containers are stacked at the Portsmouth Marine Terminal (PMT), as port workers from the International Longshoremen's Association (ILA) participate in a strike, in Portsmouth, Virginia, U.S., October 2, 2024. REUTERS/Jose Luis Gonzalez

Japanese shippers Nippon Yusen, Kawasaki Kisen and Mitsui OSK Lines logged drops between 7% and 9% and were the largest decliners on the Topix index.

"Investors who hoped for a short-term rebound in freight charges, which are in a downward trend, are selling as the strike ended," said Yang Ji-hwan, an analyst at Daishin Securities.

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