HK Stock Market Move | COSCO Shipping Energy Transportation (01138) rises more than 7% due to disruption events and strong demand in peak season. Institutions predict that freight rates will show stronger performance.

COSCO Shipping Energy Transportation (01138) rose more than 7%, with a 7.46% increase as of the time of writing, reaching 9.8 Hong Kong dollars, with a trading volume of 378 million Hong Kong dollars. On the news front, according to Shenwan Hongyuan Group, on October 9th, the U.S. OFAC announced a new round of sanctions against Iranian oil export-related companies. Among them, it involved Rizhao Sihua Crude Oil Terminal Co., Ltd., which affected the docks in Rizhao where three large VLCCs can be unloaded. The market is concerned about potential port congestion and capacity turnover impact, coupled with China's announcement on October 10th of imposing special port charges on American ships, causing a significant increase in freight rates on Friday. On October 10th, the Baltic Exchange's TD3C-TCE rose by 42% in a single day, from $57,000 per day to $80,807 per day. The event of China imposing port charges on American ships is still ongoing, and with the background of strong demand in the peak season, freight rates are expected to perform even better. JP Morgan previously stated that COSCO Shipping Energy Transportation is the largest oil tanker operator in China and one of the world's leading crude oil, refined oil, and liquefied natural gas (LNG) transportation companies. As the energy transportation division of China Cosco Shipping Corporation, the company operates a diversified fleet. Its scale, relatively new fleet age structure, and growing LNG business provide downside protection in a volatile freight market, positioning the company to benefit from years of upward cycles. The bank predicts a compound annual growth rate of 16% in net profit from 2025 to 2027, supported by freight rate recovery, structural supply and demand catalysts, and cautious fleet expansion.