Freight Rates Drive Earnings Elasticity as Shipping Industry Outlook Improves

Third-quarter reports from listed shipping companies show that the oil tanker market has enjoyed a supercycle driven by multiple factors, including geopolitics, supply and demand, and shifts in trade patterns. Dry bulk, specialized vessels, and container shipping have all entered an upswing simultaneously. Freight rates have become a key driver of profits, with several leading companies posting net profit growth of several times over, fully unleashing the earnings elasticity of the shipping sector. Data from Choice shows that as of October 31, among 35 shipping and port companies in the Shenwan Transportation sector of A-shares, 33 had comparable net profit attributable to shareholders for the first three quarters, and 25 of them recorded year-on-year growth, accounting for more than 70%. (Shanghai Securities News)