Shipping stocks surge in S. Korea amid Panama, Suez canal disruptions

[Courtesy of STX Green Logis]

As disruptions in the Panama and Suez Canals continue to drive up maritime freight rates, South Korean shipping stocks saw significant gains in early trading on Tuesday.

As of 9:20 a.m., STX Green Logis was trading at 14,110 won ($10.2), up 28.86 percent from the previous trading day on the Kospi market. Similarly, Korea Line rose by 13.66 percent to 2,580 won. Other shipping stocks also showed strong performance, with Heung-A Shipping up 10.20 percent, HMM up 4.79 percent, Pan Ocean up 4.46 percent, and KSS Line up 3.53 percent.

According to industry sources, the Shanghai Containerized Freight Index (SCFI), which tracks freight rates for shipping routes, stood at 3,475.60 as of June 21, marking the 11th consecutive week of increases.

“With ongoing transit restrictions in both the Panama and Suez Canals and no clear timeline for resolution, combined with the onset of the peak shipping season in the second half of the year, we expect the upward trend in maritime freight rates to continue, supporting a robust shipping industry outlook,” said Samsung Securities in an investor memo.