Shipping stocks rise in Europe after Red Sea attacks

MILAN, Dec 18 (Reuters): Shipping stocks rose across European exchanges on Monday after Iranian-backed Houthi militants in Yemen stepped up attacks on vessels in the Red Sea, prompting Denmark's A.P. Moller-Maersk and other freight firms to avoid the Suez Canal.
Traders bet a prolonged disruption to the key route, which allows the East-West trade without the time and expense of circumnavigating Africa, could boost rates.
Maersk rose 3.5 per cent in early trade in Copenhagen, before paring some of those gains.
By 0930 GMT, D'Amico International Shipping, Hapag Lloyd and Hafnia gained between 3 and 4 per cent. Frankfurt-listed shares in Scorpio Tankers and Nordic American Tankers rose 5.6 and 8.9 per cent, respectively.
"We believe that the decision to avoid the Red Sea route for crude/product cargoes will increase transport time and may put further upward pressure on freight rates if this condition persist," Massimo Bonisoli, an analyst at Equita, said.
Jefferies said should ships avoid the Red Sea and sail around the Cape of Good Hope, the utilisation impact would be significant, with containers and tankers the most affected.