Red Sea News-Shipping Corp, other shipping, ports in focus as Red Sea route gets disrupted
Shipping Corporation of India and Great Eastern Shipping Company after correcting 1.7-5.8% on Wednesday though rebounded on Thursday , nevertheless analysts remain cautiously watchful. Houthi attacks have started disrupting and shutting down red sea merchant ships. Ever since the Israel- Hamas Conflict started on October 7th, there have been rising incidents of attacks on commercial vessels in the Red Sea being reported.
With the escalation of attacks seen off late may shipping companies and oil industry giants have now decided to pause shipping through the region. As the situation is developing the same is sparking fears on global supply-chain disruptions and the rise in shipping rates, said analysts. Also Read- Mazagon Dock Shipbuilders, Cochin Shipyards shares jump after defence order The experts have started being cautious and feel escalation of the situation can lead to a rise in oil prices and even freight costs.
Chokkalingam G. Founder, Equinomics Research Pvt Ltd said that oil prices have already started rising on improved demand expectations with the interest rate cycle likely to have peaked out and rate cuts now being anticipated in 2024. The US oil reserves have also been depleted.
Thus, any escalation in the situation in the red sea can definitely be a cause of concern. Speaking on the share price movement Chokkalingam said that we are in a bull market many times negative news gets ignored. It is not only shipping companies but port operators also seeing volatility in their share prices.
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