Stock prices of listed liner operators, which rose at the height of the Red Sea crisis, have corrected in tandem with freight rates, according to Alphaliner’s report.
Maersk and Hapag-Lloyd, which will form Gemini Cooperation in February 2025, have seen their stock prices falling as their forecasts for 2024 are the lowest among listed box lines.
At the start of this week, only Evergreen Marine Corporation’s stock price was higher than before the Houthi rebels began terrorizing vessels in the Red Sea in October 2023. The Taiwanese operator’s stock price closed at TW$113.50 (US$3.51) on 2 October 2023; today (27 March), it closed at TW$175.50 (US$5.48).
In comparison, AP Moller Maersk’s stock price closed at DKK12,765 (US$1,793) on 2 October 2023; the stock is now trading at around DKK8,960 (US$1,300). Hapag-Lloyd’s stock price closed at €175.70 (US$183.38) on 2 October 2023; the stock is now trading at about €131 (US$142)
Alphaliner explained, “Instead, poor financial earnings have replaced capacity re-routing as the main driver of stock prices, with the release of generally weak Q4 earnings accelerating a downward trend that had already started in February.”
Stock prices for medium-tier carriers OOIL, COSCO, HMM and ZIM are now below, or in the case of COSCO Ship Holding, which has yet to release earnings, back to pre-conflict levels. OOIL and ZIM saw their stock prices decline by 17% and 14% respectively, immediately after announcing 2023 financials.
Evergreen achieved a US$1.1 billion net profit for 2023, making it among the best three performing box lines that year.
Alphaliner said, “The trend contrasts with freight rates which, while also falling, are still firm compared to pre-conflict levels.”
On 25 March, the Shanghai Containerised Freight Index (SCFI) stood at 1,733 points, marking a sixth straight week of decline, although it remains 95% higher than on 1 October.
Martina Li
Asia Correspondent
