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Freight rate surge lifts Asia shipping stocks, outlook brightens
Goldman Sachs' Asia shipping gauge is up about 17% this quarter, while semiconductor stocks have fallen 18%.
Asia shipping stocks have outperformed semiconductors as geopolitical tensions have tightened vessel supply and pushed freight rates higher, improving the earnings outlook for container liners, LiveMint Markets reports, citing Bloomberg. A Goldman Sachs gauge of Asia shipping climbed about 17% this quarter, while an index of semiconductor stocks declined 18% over the same period. The increase has been attributed to disruptions in the Red Sea and the Strait of Hormuz tied to the Iran conflict, along with demand to get ahead of US tariffs, which has contributed to firmer pricing for shippers. The Shanghai Containerized Freight Index is at its highest level since July 2024 after rising for eight straight weeks. Shipping names leading the gains in Asia include TS Lines, SITC International Holdings, and Mitsui OSK Lines, with Bloomberg Intelligence also pointing to typhoons that could worsen port congestion and reduce effective capacity.
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