(Yicai) Dec. 18 -- Shares in Chinese shippers surged today after more shipping giants, including China Ocean Shipping Group, were reported to suspend transport through the Red Sea following a number of attacks on ships by Yemen’s Houthi armed forces, sparking market expectations of tight capacity and rising freight rates.

Shanghai-based COSCO’s listed arm COSCO Shipping Energy Transportation’s share price [SHA: 600026] surged by the exchange-imposed limit of 10 percent to close at CNY12.72 (USD1.78).

Other shippers, namely Fujian Highton Development [SHA: 603162], Ningbo Ocean Shipping [SHA: 601022] and Shanghai Jinjiang Shipping Group [SHA: 601083], also saw their stock price jump by 10 percent today.

Hong Kong-based Orient Overseas International, Taipei-based Evergreen Marine and Japan’s Ocean Network Express have also said they will no longer use the Red Sea route, which is one of the world’s most important shipping routes for oil and fuel, The Paper reported today, citing a freight forwarder.

And earlier this month Denmark’s Maersk, France’s CMA CGM, Switzerland’s MSC and Germany’s Hapag-Lloyd suspended cargo transportation along this narrow sea inlet that links Europe, Asia and Africa, Xinhua reported previously. 

If international freighters do not go through the Red Sea, their vessels have to be rerouted around the Cape of Good Hope at the southern tip of Africa. The journey adds another 9,000 kilometers and an extra six to 14 days, Sealand Securities said in a report. This will greatly delay the delivery of goods and cause panic buying, it added.

Editor: Kim Taylor