Shares of Danish shipping giant Maersk tumble after Baltimore bridge accident
By Barbara Kollmeyer
Shares of the Danish shipping and logistics giant A.P. Moeller Maersk tumbled on Tuesday as the company said it chartered the ship that crashed into the Francis Scott Key Bridge in Baltimore.
Maersk (DK:MAERSK.B) stock slid over 6% in Copenhagen. In a statement, Maersk said that it had chartered the ship - the "Dali" - and that it was carrying Maersk cargo, but none of its crew members were aboard.
"We are horrified by what has happened in Baltimore, and our thoughts are with all of those affected," Maersk said. It's not immediately clear what company provided Maersk with insurance.
The owner of the ship, Synergy Marine Group, said in a statement on its website that the vessel collided with a pillar of the Francis Scott Key Bridge at around 1:30 a.m. local time, with two pilots aboard. All of its crew have been accounted for, with no injuries.
The container ship rammed into the bridge in the darkness, breaking into parts and plunge into the river below, also sending several vehicles into the waters. A rescue operation underway to search for survivors.
Maersk shares are down 28% so far this year. Red Sea attacks and disruptions and an increase in new vessels have weighed on freight rates, complicating the fortunes of the shipping company.
In early February, Maersk announced plans to suspend a share buyback and warned of a steep earnings fall, sending shares sharply lower.
Like other shipping companies, Maersk has been forced to divert its ships away from the Red Sea due to attacks by Iranian-backed Houthi rebels, to a lengthier route around the Cape of Good Hope, which traverses the African continent. Maersk has said the rerouting would bring increased costs.
-Barbara Kollmeyer
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03-26-24 0920ET
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