Maersk shares plunge amid Gaza ceasefire support
Danish shipping giant A.P. Moller-Maersk’s stock fell nearly seven percent following backing of a ceasefire in Gaza by the militant Palestinian movement Hamas, as stated by a resolution from the United Nations Security Council. Senior analyst Mikkel Emil Jensen from Sydbank believes the potential ceasefire, that could halt the Houthi’s motive for Red Sea attacks, is likely contributing to the decline. This could reopen a shorter trade route, increasing market capacity and potentially affecting Maersk’s earnings negatively. Previously, the threat from the Houthi movement had rerouted ships around Africa, boosting freight rates and shipping companies’ revenues. Despite the possible ceasefire, Jensen still considers Maersk’s profit forecast conservative, expecting a downward trend in sea-activity earnings into 2024.