Container liner shares fell across the board in Europe and Asia after the US port strike ended on Thursday.
AP Moller-Maersk plunged as much as 8.6% in Copenhagen while Hapag-Lloyd lost 12.8% in Frankfurt.
Fearnley Securities analysts Fredrik Dybwad and Nils Thommesen said in a note: “With the strike ending after three days, the impacts of the strike should be short-lived, albeit could lead to some upside pressure on rates over the coming weeks.”
The strike, which started on Tuesday, halted container ship and ro-ro operations across dozens of ports in the US.
“However, with a steady stream of newbuildings being delivered and a front-end-loaded growth in container throughput this year, rates should end the year lower than current levels,” the analysts said.
“As such, third-quarter 2024 should mark the peak of this earnings cycle for container liners.”
Fearnleys sees fleet growth of 2.5% in the fourth quarter and 6.2% in 2025.
The International Longshoremen’s Association and the employers’ group said they had reached a tentative agreement on wages that comes with an extension of their existing contract until 15 January.
Ports will reopen and start operations from Friday.
“Congestion from the strike could lead to somewhat higher rates in the fourth quarter than current estimates suggest, though we believe the impact on 2025 estimates should be limited,” Fearnleys said.
The stock of MPC Container Ships fell 9% in Oslo.
In Asia, shares of Evergreen Marine, Wan Hai Lines, NYK Line and Mitsui OSK Lines dropped about 10%.
