2024-01-05 12:45:11 ET
ZIM Integrated Shipping ( NYSE: ZIM ) closed above its 200-day moving average on Thursday, registering a 11% gain and is on track to have one of its best weeks on record.
Shares have rallied 48% over the past five trading sessions and a whopping 99.86% over the past month amid the Red Sea disruptions.
The Israel-based cargo shipping company appears to be among the greatest beneficiaries of the ongoing disruptions due to its massive spot exposure.
The Ocean freight rates are surging after Houthi rebels attacked a Maersk ship last weekend caused carriers to suspend plans to restart transits through the Red Sea en route to the Suez Canal.
ZIM and other shipping stocks are already reaping the benefits from increased container freight rates, but The Wall Street Journal warns that the surge could retreat soon as new container fleet come online this year.
Low fleet utilization and increased shipping capacity indicates that the prices will likely remain under pressure for a while, the journal suggests.
Shares of ZIM Integrated Shipping ( ZIM ) were 9.2% high as of 12.45 PM ET on Friday
More on ZIM Integrated
- ZIM Integrated Shipping: Prime Beneficiary Of Red Sea Disruptions, Buy
- ZIM: Fade The Houthi Induced Rally (Rating Downgrade)
- ZIM Integrated: War Fueled Short Squeeze; Will It Continue?
- Red Sea ship attacks send ocean freight rates soaring
- Watch shipping stocks: Maersk pauses Red Sea voyages after Houthi attacks
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ZIM shares on rally amid Red Sea disturbances but will tailwinds subside