[Featured Stock] Shipping Stocks Surge on Suez Canal Accident

[Asia Economy Reporter Ji Yeon-jin] Shipping stocks are soaring on the 26th. It is analyzed that the blockage of the Suez Canal due to an accident is expected to cause a logistics crisis and a surge in freight rates, pushing up stock prices.

Pan Ocean vessel

As of 10:30 AM on the 26th, HMM is trading at 34,600 won, up 5,050 won (17.32%) from the previous day. Korea Line is also up 210 won (5.78%) to 3,755 won, and Pan Ocean is trading at 6,870 won, up 300 won (4.57%).

On the 23rd (local time), a container ship named "Ever Given" stopped at the northern part of the Suez Canal in Egypt, which connects the Mediterranean Sea and the Red Sea. The vessel, which departed from China and was heading to the port of Rotterdam in the Netherlands, stopped in the Suez Canal, causing subsequent ships to halt navigation as well. This accident is expected to cause a logistics crisis and a surge in freight rates.

Choi Go-woon, a researcher at Korea Investment & Securities, said, "Freight market conditions are very sensitive to supply uncertainties, so if this situation is not resolved in the short term, freight rates will surge," adding, "Also, since the route to Europe has been blocked, it could cause a larger logistics crisis than now."