Maersk, the global trade barometer, recently warned that the chain reaction caused by the congestion in the Red Sea has a greater impact on the global supply chain than previously expected.
According to the UK Maritime Trade Operations, a British military unit, the cargo ship 'TUTOR' that was previously attacked by Houthi rebels sank 66 nautical miles southwest of Hodeidah, Yemen on the evening of June 18th local time. Earlier, the British cargo ship 'RUBY MAR' was hit by a missile from the Houthi rebels and sank in waters near the Yemeni coast on March 1st.
Global trade benchmark Maersk recently warned that the ripple effects of the congestion in the Red Sea have a greater impact on the global supply chain than previously expected.
Lars Barstad, CEO of Frontline (FRO.US), stated on Wednesday that even if there is a ceasefire between Israel and Palestine, it is unlikely that shipping companies will return to the Red Sea 'soon' due to the Houthi rebels' attacks on ships in Yemen.
Since Houthi rebels began attacking ships passing through the Red Sea in November last year, the stock prices of Frontline and other shipping companies have risen sharply because ships have been forced to bypass the Cape of Good Hope in Africa, pushing up shipping prices.
HTSC's report stated that since the beginning of this year, due to strong export demand and the impact of bypassing the Red Sea, container shipping rates have risen sharply and the market is highly prosperous. Looking ahead to the second half of the year, the bank expects the bypassing of the Red Sea to continue, resulting in increased cargo volume at transit ports, and congestion at ports has gradually appeared since May. As for demand, the traditional peak season in Europe and the United States is expected to come in the third quarter, with cargo volume expected to rise quarter by quarter, and shipping rates are expected to rise further.
In the medium to long term, it is expected that new ship deliveries will increase from 2023 to 2026, but the structural changes in capacity deployment caused by industry restructuring will significantly increase the newly added capacity in emerging markets, and the growth in tonne-miles demand is expected to drive the industry's profit center.
Related companies in the marine transportation industry chain include:
OOIL (00316), Pacific Basin (02343), Cosco Shipping Holdings (01919), Cosco Ship Engy (01138), China International Marine Containers (02039), and others are companies related to the marine transportation industry chain.