HK Stock Moves | COSCO Shipping Energy (01138) rises over 8% in afternoon session; Market concerns about tanker rates with no volume despite high prices; Current freight rates still significantly higher than historical extremes

CITIC Finance APP reports that COSCO SHIPPING Energy Transportation (01138) rose over 8% in the afternoon. As of the time of writing, it increased by 6.43% to HKD 18.7, with a trading volume of HKD 481 million.

On the news front, according to a report from the UK on the 16th, no ships were navigating the Strait of Hormuz on the 14th. This is the first time since the US and Israel launched military actions against Iran. Maritime data analysis firm Windward stated, “On the 14th, the number of ships passing through the Strait of Hormuz dropped to zero for the first time since the conflict began. Before the conflict, an average of 77 ships passed through the strait daily.”

Changjiang Securities released a research report stating that with the closure of the Strait of Hormuz and limited alternative routes through Middle Eastern pipelines, the apparent demand for VLCC oil tankers may decrease by 33%, with supply reduced by about 11%. Market transactions are expected to be price-strong but volume-light. However, since the beginning of the year, Clarkson’s VLCC TCE has been at $141,000 per day, still significantly higher than the historical peak of $65,000. The firm pointed out that in the short term, with expectations of rising prices but shrinking volume, tanker stocks may stagnate; in the medium term, the crude oil inventory replenishment cycle is expected to bring demand pulses; in the long term, the logic of demand compliance and long-term shipping companies controlling the market to go long will continue, and the oil transportation sector will enter a phase of high prices and increasing volume.