Freight Rates Rise as Middle East Tensions Escalate; Shipping Stocks Gain [STOCK NOW]

[Financial News] Shipping stocks are gaining strength as escalating tensions in the Middle East raise expectations for improved earnings driven by higher freight rates.
As of 10:16 a.m. on the 10th, STX Green Logis was trading at 4,060 won, up 565 won, or 16.01%, from the previous trading day. Heung-A Shipping was also surging 13.24% at the same time, while Korea Line Corporation was up 2.50%.
Tensions surrounding the Strait of Hormuz are rising as retaliatory attacks between the United States and Iran continue. In the Red Sea, Saudi Arabia and the Houthi Yemeni rebels are also continuing to clash after a four-year ceasefire ended.
Maritime freight rates have continued to rise as the Red Sea, an alternative route to the Strait of Hormuz, also faces the threat of a blockade. According to the Korea Ocean Business Corporation (KOBC), the Container Freight Index (KCCI) stood at 4,697 as of the 7th, up 106 points, or 2.31%, from the previous week.
Jeong Yeon-seung, an analyst at NH Investment & Securities, said, "Freight rates remain strong, particularly for oil tankers, LPG carriers, and MR tankers, as repeated attacks have been reported in the Strait of Hormuz." He added, "Stock prices are gaining strength, particularly among shipping companies with high dividend payout ratios, as freight-rate levels are elevated across the shipping sector."

[email protected] Seo Min-ji Reporter