Shipping stocks rose across the board in early trading on the 16th. Investor sentiment appeared to be buoyed by expectations that freight rates will climb as the Strait of Hormuz remains blocked amid tensions between the United States and Israel and Iran.
As of 9:41 a.m. that day, Heung-A Shipping was trading at 2,905 won on the Korea Exchange, up 570 won (24.41%) from the previous session.
At the same time, STX Green Logis (17.33%), Korea Line Corporation (14.77%), HMM (1.43%) and Pan Ocean (2.57%) were also gaining.
The moves were seen as driven by growing expectations for higher freight rates as maritime transport risks expand amid escalating tensions in the Middle East.
The Strait of Hormuz is a key route through which about 20% of the world's seaborne crude oil passes, and if a blockade or military clash occurs, shipping costs could rise due to disruptions to vessel operations, higher insurance premiums and the use of alternative routes. In fact, after attacks on Iran by the United States and Israel, Iran has effectively blocked the Strait of Hormuz.
President Donald Trump has said he would step up escorts for ships transiting the Strait of Hormuz. On the 14th (local time), he effectively called on five countries—Korea, China, Japan, the United Kingdom and France—to dispatch warships to the Strait of Hormuz via the social media platform Truth Social.