Shippers rise amid Iran conflict, Suez Canal risks and China-US recovery

Shares in shipping groups rise in early trade as analysts flag upside risks to freight rates from Red Sea disruptions, Iran tensions and likely prolonged shift away from Suez Canal

ABG Sundal Collier analysts say Israel's strikes on Iran will delay Red Sea reopening, boosting container and car carrier demand, while reduced Iranian crude and LPG exports shift to compliant fleets, pushing tanker rates higher

Arctic Securities analyst Kristoffer Barth Skeie adds that rising geopolitical risks in the region are expected to disrupt trade flows, making a reversal through Suez Canal less likely

Additionally, Jefferies notes that China-US trade truce is expected to restore "regular way" volumes, paving way for significant rise in freight rates

It adds that stable freight rates and signs of recovering China-US demand could support the sector, with limited near-term capacity and ongoing Red Sea route avoidance maintaining tight supply and pricing power

Shares in container giants Danish Maersk MAERSKb.CO and German Hapag-Lloyd HLAG.DE are up 4.2% and 1.6%, respectively

Tankers Frontline FRO.OL, Torm TRMDa.CO and Euronav CMBT.BR rise 5.8%, 5.1% and 2.5%, respectively