Investing.com - Shipping stocks, led by Danish giant AP Moeller-Maersk (CSE:MAERSKb), fell Monday as investors digested ceasefire talks in Gaza as well as the potential impact of Hurricane Beryl in the Gulf of Mexico.
At 08:50 ET (12:50 GMT), Maersk stock fell 4% to DKK11,810, now down around 3% year-to-date.
Efforts to secure a ceasefire and hostage release in Gaza have gathered momentum, with talks over a U.S. ceasefire plan to end the nine-month-old war under way and being mediated by Qatar and Egypt.
The shipping giant raised its full-year profit outlook twice in the first quarter, citing "continued strong container market demand" and disruptions caused by an ongoing crisis in the crucial Red Sea shipping region.
The company added that these trends, along with signs of further port congestions in Asia and the Middle East and an uptick in freight rates, are expected to contribute to a "stronger financial performance in the second half of 2024."
However, the potential end of these raised tensions could see shipping rates fall back to more normal levels, hitting its bottom line.
At the same time, Hurricane Beryl made landfall in Texas earlier Monday, with a number of ports in the region closing in preparation.
Port closures could bring a temporary halt to crude and liquefied natural gas exports, oil shipments to refineries and motor fuel deliveries from those plants.