- Maintain OVERWEIGHT on the sector. Top picks are Seatrium and Marco Polo Marine with Yangzijiang appearing to have very favourable risk/reward at present.
The tariff tsunami.
- - Read this at SGinvestors.io -
- The irrational expectation for about 90 bilateral agreements to be negotiated in the next few months appears forgotten for now, however the impact has already been felt in the energy sector with weaker oil prices (-18% since 2 April), lower onshore rig counts, and more warm-stacked jack-up rigs.
Shipping hit by negative sentiment, but impact may be less than feared.
- - Read this at SGinvestors.io -
- Conversely, intra-Asia container trade has swiftly expanded from 22% in 2004 to 31% in 2024. Thus, it would appear that the US’ proposed port fees on China-built ships may be less of a hurdle for global trade than initially thought.
Offshore rigs continue to do well, with deepwater assets the focus.
- Read more at SGinvestors.io.
