Israeli company ZIM is enjoying a resurgence in value thanks to the Houthi attacks on the Red Sea shipping lane which have caused shipping rates to soar, according to investing site TipRanks.
Per the site, ZIM, which does not own most of its fleet but instead leases and operates others' ships, had enjoyed boom times during the pandemic when shipping rates were high due to bottlenecks and restrictions.
When covid restrictions and bottlenecks eased, its value started to go down as rates declined and went below what the company needed to refund the owners of the ships it operates. Now, thanks to the effective closure of the Red Sea shipping lane, shipping rates are back up as is ZIM stock.
Still, since it's unclear how long the lane will remain under threat, it remains to be seen whether this resurgence will last.
