VLCC Freight Rates Under Pressure as Global Crude Oil Seaborne Exports Drop Over 10%; COSCO SHIP ENGY Shares Fall Nearly 4% Again

Stock News
May 29

COSCO SHIP ENGY (01138) fell nearly 4% again, down 3.17% at the time of writing to HK$15.9, with a turnover of HK$369 million. Following the outbreak of the U.S.-Israel-Iran conflict, vessel traffic through the Strait of Hormuz has been obstructed, leading to a sharp decline in crude oil exports from the Middle East and significantly impacting global crude oil supply. Guotai Haitong Securities noted that global seaborne crude oil exports in March and April decreased by over 10% year-on-year, with the largest year-on-year decline exceeding 20% in mid-March and a year-on-year drop of about 12% in April. Hengli Futures added that in the VLCC shipping market, the overall shipping landscape remains relatively loose, with capacity continuing to accumulate, putting pressure on freight rates. Changjiang Securities previously stated that among COSCO SHIP ENGY's three main business segments, international crude oil shipping saw high demand in the first quarter, domestic oil shipping showed marginal improvement, and LNG gross profit margins rose further from already high levels, boosting the company's performance. Looking ahead, the oil shipping industry is entering an era of "chaos," where the underlying logic shifts from efficiency-based pricing to certainty-based pricing. After the Strait reopens, crude oil restocking and long-term chartering by shipping companies are expected to drive both volume and prices higher in oil shipping, while the high-margin LNG segment will continue to enhance profits through capacity deployment.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10