Maersk shares sink as Gaza deal threatens to end lucrative shipping crunch

While much of the world welcomes a deal to end fighting in Gaza and release hostages, there is one group perhaps less sanguine on the news: investors in shipping giant Maersk, which is seeing stock prices plummet as the prospect of an end to Houthi attacks on Red Sea shipping stands to bring freight charges down.

Shares have fallen 2 percent today to their lowest level since July, as investors anticipate a Gaza ceasefire deal that could eventually restore container shipping routes through the Red Sea and Suez Canal, easing a capacity crunch that has supported freight rates.

“Maersk is falling due to the expectation of further drops in the freight rates in connection with a higher probability of safe passage through the Red Sea,” Sydbank analyst Mikkel Emil Jensen says.

Analysts warn that even if the ceasefire holds, shipping companies are likely to wait months for assurances that attacks will not resume.

The Houthis have yet to comment on the ceasefire deal or signal any policy change. The group claimed responsibility for attacking a Dutch-operated vessel last week.

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