Published on 19 Jun 2024 on Insider Monkey · via Yahoo Finance
Canadian National Railway Company (CNI): Why Were Investors Bullish on this...
We recently compiled a list of the 11 Best Freight Stocks To Buy Now. In this article, we are going to take a look at where Canadian National Railway Company (NYSE:CNI) stands against the other freight stocks.
The Red Sea Crisis & Shipping Challenges
The Red Sea accounts for 30% of global container trade via the Suez Canal. According to a report by JP Morgan, the Houthi attacks have disrupted the entire supply chain, forcing companies to reroute around Southern Africa, adding 4,000 miles to every journey. Rerouting will increase transit times by almost 30% and global container shipping capacity will decline by almost 9%. The report suggests that spot rates have soared amid the crisis. Spot rates in January 2024 from China to the US West and East Coast rose by 140% to 120% compared to November 2023. Jamie Dimon's investment bank expects trade disruptions to add 0.7 percentage points to global core goods inflation, and 0.3 percentage points to overall core inflation.