Maersk among Friday's fallers as US port strike called off

4th Oct 2024 08:54

(Sharecast News) - Shares in shipping firms were in the red on Friday, with Maersk particularly affected, following the resolution of a US port strike that had initially raised hopes for a boost in global shipping demand for European operators.

The strike, which impacted ports on the US East Coast and Gulf Coast, had caused significant disruptions in supply chains stateside, with goods like fruits, pharmaceuticals, and automobiles left anchored offshore.

However, a tentative deal was reached between dockworkers and the United States Maritime Alliance on Thursday, extending their current contract until 15 January.

The swift resolution deflated the expectations that European shipping firms could benefit from increased global trade rerouting.

Germany's Hapag Lloyd and Swiss logistics firm Kuehne + Nagel were also suffering on Friday, after similar declines among Asian shipping companies overnight, with Japan's Nippon Yusen and Kawasaki Kisen among the losers.

The port strike had been the first by the International Longshoremen's Association in over half a century, and affected operations at 14 ports.

Analysts had previously warned that a more extended strike could have caused severe disruptions to global trade.

At 0930 EDT (0830 BST), shares in AP Moller Maersk were down 7.39% at 1,271.5p.

Reporting by Josh White for Sharecast.com.