Shipping Shares Tumble as U.S. Port Strike Ends Early

Shares in leading Asian shipping companies plummeted on Friday following an unexpectedly early resolution to the U.S. East and Gulf coast dockworkers' strike. Companies like Evergreen Marine and Nippon Yusen saw significant declines amid investor concerns over persistent downturns in freight rates.

Shares in major shipping companies across Asia took a significant hit on Friday after a surprise early end to the U.S. East and Gulf coast dockworkers' strike. Key players such as Evergreen Marine, Wan Hai Lines, and Yang Ming Marine in Taiwan experienced drops between 8.8% and 10%, marking their most substantial declines in several months.

In Japan, shipping firms Nippon Yusen, Kawasaki Kisen, and Mitsui OSK Lines saw their shares fall between 7% and 9%, making them the biggest losers on the Topix index. The resolution of the strike has led investors, who had anticipated a temporary uptick in freight charges amidst a downtrend, to sell rapidly, according to Yang Ji-hwan, an analyst at Daishin Securities.

The swift conclusion to the strike has intensified concerns about the ongoing decline in freight rates, prompting a wave of sell-offs across the sector as market participants adjust their strategies.

(With inputs from agencies.)