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
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
03-26-24 0920ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
What History Tells Us About the Fed’s Next Move
-
What’s Happening In the Markets This Week
-
Alphabet’s New Dividend: What Investors Need to Know
-
Going Into Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?
-
Going Into Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?
-
What’s the Difference Between the CPI and PCE Indexes?
-
5 Stocks to Buy That We Still Like After They’ve Run Up
-
Markets Brief: Stocks Are Starting to Look Cheap Again
-
AbbVie Earnings: Next-Generation Immunology Drugs Help Offset Humira Biosimilar Pressure
-
Exxon Earnings: Ignore Earnings Shortfall as Long-Term Growth and Improvement on Track
-
American Airlines Earnings: We See Costs Overshadowing Market Share This Year
-
Snap Earnings: Advertising Growth and Snapchat+ Drive Monetization
-
STMicro Earnings: We Still See an Attractive Margin of Safety Despite a Poor First-Half Forecast
-
Alphabet Shares Surge on Strong Earnings, Dividend Surprise
-
Microsoft Earnings: Firm Beats Forecasts on Strong AI and Cloud Demand
-
PG&E Earnings: Near-Term Regulatory Certainty Supports Industry-Leading Earnings Growth