In early trading on October 8, A-share shipping stocks surged. COSCO Shipping Energy hit the daily limit up, China Merchants Energy Shipping, Nanjing Tanker Corporation, and Haitong Development rose more than 5 percent, while Jinjiang Shipping, Phoenix Shipping, and China COSCO Shipping Corporation followed higher. On the news front, according to CCTV News, on October 7 local time, Naghdi, an adviser to the commander of Iran's Islamic Revolutionary Guard Corps, said the Strait of Hormuz has been closed and Iran will block the strait's illegal shipping lanes until Iran's legitimate demands are met. Affected by repeated US-Iran conflicts, oil shipping rates have continued to rise. Clarksons data show that average VLCC earnings reached 277,995 US dollars per day in the third quarter, and after early October, earnings on some routes have exceeded 1.6 million US dollars per day, with overall market earnings at one point surpassing 600,000 US dollars per day. Huayuan Securities believes that with upstream volume expansion, midstream efficiency declines, and downstream panic buying, the great era of oil shipping is unfolding. Since the US-Iran conflict reignited in July, geopolitical disruptions have continued to affect the crude oil supply chain, and oil shipping prosperity has entered a new phase. CITIC Securities said that since August, the spiraling loss of effective shipping capacity and the resonance of increased cargo volumes have continued to squeeze the transport segment as the core contradiction. Preliminary Kpler data show that as of October 1, the seven-day moving average was 18.5 million barrels per day, with crude oil shipments from the Greater Middle East roughly unchanged from before the conflict. CITIC Securities recommends watching the marginal increase in Chinese cargo volumes after the National Day holiday. On October 5, Saudi Arabia widened the discount for Arab Light crude sold to Asia in November. CITIC Securities conservatively forecasts China Merchants Energy Shipping's annual profit at 20.5 billion yuan. GF Securities also believes that looking ahead, the focus should be on oil shipping, Southeast Asian container shipping, and dry bulk shipping. Oil shipping remains the sector with the most prominent prosperity, and the duration of high freight rates is key to determining fourth-quarter earnings elasticity, with China Merchants Energy Shipping and COSCO Shipping Energy warranting close attention.
COSCO Shipping Energy Transportation Co LtdStrait of Hormuz closure from US-Iran conflict disrupts crude supply chain and lifts oil shipping rates, directly benefiting COSCO Shipping Energy as a tanker operator.
Chang Jiang Shipping Group Phoenix Co Ltd
Shanghai Jinjiang Shipping (Group) Co., Ltd.
China Merchants Energy Shipping Co Ltd
Nanjing Tanker Corp
