Surging freight rates lift share prices of S.Korean shippers
Increasing freight rates boosted share prices of South Korean shippers, led by HMM Co., with investors seeing improved earnings down the road.
On Friday, the Shanghai Containerized Freight Index reached 1,664.56, surpassing the previous record of 1,583.18 posted in July 2010.
Shares of No. 1 shipper HMM went up 15.12 percent to 11,800 won while those of bulk carrier Korea Line jumped 29.75 percent to 2,115 won.
Pan Ocean, another bulk carrier, also had its shares prices surging 14.78 percent to 4,000 won, while and KSS Line's rose 5.07 percent to 10,150 won.
Freight rates of South Korean shipping companies are expected to rise more next year with less competition from global shippers who have cut down on business due to the pandemic.
Industry watchers added that South Korean shippers would benefit from growing demand to be triggered y the year-end shopping season in the US.