Shipping firms respond to Houthi attacks in Red Sea
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 02 2024
0mins
Source: reuters
- Impact of Attacks on Vessels by Houthi Militants:
- Attacks in the Red Sea have disrupted a vital shipping route, leading to higher freight rates and congestion in ports.
- Actions Taken by Shipping Companies:
- Various companies like Maersk, MSC, and Nippon Yusen have suspended navigation through the Red Sea or rerouted vessels to avoid the area.
- Specific Company Responses:
- Companies like Diana Shipping, Evergreen, and Hapag-Lloyd have rerouted ships around Africa or halted Red Sea transits until further notice.
- Duration of Disruptions:
- Expectations are that disruptions to commercial shipping due to the Red Sea crisis will last for months or even until the end of 2024.
- Financial Impact on Shipping Industry:
- Shipping companies are cutting expenses and adapting sailings due to global vessel oversupply and disruptions, affecting operating profits and capacity.
Analyst Views on DSX
About DSX
Diana Shipping Inc. is a Greece-based global provider of shipping transportation services. The Company specializes in the ownership and bareboat charter-in of dry bulk vessels. The Company's operating fleet consists of 40 dry bulk vessels, including 4 Newcastlemax, 11 Capesize, 5 Post-Panamax, 6 Kamsarmax, 8 Panamax, and 6 Ultramax. Its fleet combined carrying capacity is approximately 4.7 million deadweight tonnage (dwt) with a weighted average age of 10.16 years. The Company's fleet is managed by its wholly-owned subsidiary Diana Shipping Services S.A. and its established 50/50 joint venture with Wilhelmsen Ship Management named Diana Wilhelmsen Management Limited.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
