Maersk slumps 7% as the end of U.S. port strikes weighs on European shipping stocks

Shares of Moller-Maersk slumped more than 8% on the Friday market open as European shipping companies fell on the conclusion of a U.S. port strike.

U.S. dockworkers and the United States Maritime Alliance on Thursday brokered a tentative deal on wages and extended their existing contract through Jan. 15 to provide time to negotiate a new agreement.

A prolonged strike would have provided a boost for European shippers to take a larger share of global supply chain demands.

Maersk shares pared losses slightly to trade down 7.2% by 8:44 a.m. London time.

Germany’s Hapag Lloyd was down 12.72%.Swiss logistics company Kuehne + Nagel also fell 1.66%.

Thursday’s deal ended a strike that had choked U.S. East Coast and Gulf Coast ports since the start of the week and threatened U.S. supply of fruits, pharmaceuticals and automobiles, among other goods.

U.S. supply chains incurred significant disruptions even during the brief walkout, with billions of dollars in goods anchored offshore ahead of the busy holiday shopping period.

This is a breaking news story. Please check back for updates.