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Frontline (NYSE:FRO) CEO Lars Barstad said Wednesday that shipping companies are unlikely to return to the Red Sea “anytime soon” even in the event of a ceasefire in the Israel-Hamas war that could help end attacks on vessels.
“We all want ceasefire between Hamas and Israel, but to expect owners to put their seafarers at risk passing the Red Sea or Gulf of Aden anytime soon is a bit naive,” Barstad said, adding there is no evidence that Houthi rebels would stop with a ceasefire, pointing to fresh reports of an attack on a ship near Yemen.
Shares in Frontline (FRO) and its competitors have scored big gains since the Houthis started targeting ships in November, with the conflict pushing prices higher as shipowners were forced to switch to routes around Africa’s Cape of Good Hope.
But shares in top container shipowners A.P. Moller-Maersk (OTCPK:AMKBF) (OTCPK:AMKBY) and Hapag-Lloyd (OTCPK:HLAGF) (OTCPK:HPGLY) have both shed 6% since Monday, when a plan to end the eight-month war appeared to gain momentum.
