A.P. Moller - Maersk A/S and Hapag-Lloyd AG have denied any deal with Houthi rebels in Yemen to facilitate the safe movement of vessels through the Red Sea. Container company stocks were hit by a report in a Danish publication that said meetings between Houthi rebels and shipowners had taken place, and that some safe passage accords had already been agreed upon.
Maersk A/S closed down 5.7% in Copenhagen, after earlier falling as much as 8.4%, while Hapag-Lloyd was down 8.2% at 5:15p.m in Frankfurt, after earlier sinking as much as 10.5%. Other companies to see declines included Kuehne & Nagel and Frontline.
A safe passage pact would mean faster sailing distances between Asia and Europe, causing the supply of vessels to jump and shipping rates to likely drop. Stocks of container companies had rallied in recent weeks by predictions that the rebel attacks would see rates go higher as firms avoid the region.
Source: ajot.com
