Shipping stocks are up on Monday after BP (NYSE:BP) announced that it will pause on using shipping routes that travel through the Red Sea.
This announcement comes alongside increased attacks from Houthis in the region. The maritime risk in the area has escalated to the point that attacks are happening “almost daily” now.
Outside of BP, several shipping companies have announced that they won’t risk using routes that move through the Red Sea. With these announcements comes the need for shipping companies to use longer routes. This will make shipping more expensive, although that’s also a benefit for the shipping companies.
Massimo Bonisoli, an analyst at Equita, told Reuters the following about the shipping news:
“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.”
Let’s check out how this news is affecting some of the top shipping companies below!
Shipping Stocks Up Today
- ZIM Integrated Shipping Services (NYSE:ZIM) stock is up more than 6% alongside today’s news.
- Genco Shipping & Trading (NYSE:GNK) stock is rising over 1% after news of the Red Sea halt was revealed.
- Eagle Bulk Shipping (NYSE:EGLE) shares are seeing an almost 1% gain on today’s update.
- Star Bulk Carriers (NASDAQ:SBLK) stock is climbing more than 1% as of Monday morning.
Investors can find more of the latest stock market news ready to go below!
We have all of the hottest stock market happenings worth reading about on Monday! Among that is what’s happening with shares of Xpeng (NYSE:XPEV), DocuSign (NASDAQ:DOCU) and Nokia (NYSE:NOK) stock this morning. All of that news is ready to go at the links below!
More Monday Stock Market News
- Dear XPEV Stock Fans, Mark Your Calendars for Jan. 1
- DOCU Stock Alert: DocuSign Is Exploring a Deal to Sell Itself
- Goldman Sachs Is Souring on Nokia (NOK) Stock
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
