Harbour transportation stocks rebound, OOIL (00316) up 3.23%, COSCO Shipping Holdings (01919) up 2.74%, Pacific Basin (02343) up 1.97%, China Merch Port (00144) up 1.33%, Cosco Ship Engy (01138) up 1.18%.
Morgan Stanley released a research report stating that due to tight supply, the rising cycle of oil tankers in the next 1 to 2 years is still very optimistic. If the Red Sea disturbance continues, the rise in container spot freight rates may continue until summer, but the problem of oversupply still remains a concern.
Huafu Securities believes that overall, the Red Sea conflict will continue to impact the market throughout the year. Clarkson predicts that the demand for TEUs and nautical miles in the integrated shipping market in 2024 will increase by 12.8% YoY, while the supply-side capacity will increase by 9.3% YoY. A reversal in supply and demand will support the performance recovery of integrated shipping companies for the full year and reproduce the winners of the global supply chain congestion in 2021. If the Red Sea conflict continues for a long time, it will be beneficial to the integrated shipping giants to improve their long-term contract prices and significantly repair their valuations in 2025.