Goldman Sachs published a report stating that there is a risk that shipping rates will rise in the second quarter due to blockages in some ports and the possibility of new demand from non-main routes. On the container side, the bank attributed the rise in freight rates to route diversions due to supply chain disruptions due to the Red Sea conflict, strong short-term demand in the US/European terminal market, urgent shipments/early orders before the peak season, and the growth of non-backbone routes driven by Chinese companies' export strategies. On the cruise side, the bank believes that in the face of long-term supply constraints, potential replenishment of low crude oil stocks may be a catalytic factor boosting freight rates.
The bank adjusted COSCO Offshore's profit forecast for 2024 to 2026 by 9% to 26%, raising the target price from HK$6.9 to HK$7.6, and also raised COSCO Marine's target price from HK$10.3 to HK$11.5.