Morgan Stanley: Maintains constructive view on oil tanker shipping, suggests taking advantage of the opportunity to reduce holdings in container shipping.

Morgan Stanley released a research report stating that the conflict in the Middle East has affected the navigation capacity of the Strait of Hormuz. The report cited Clarkson's estimate that currently 7% of crude oil tanker fleet capacity, 5% of liquefied petroleum gas ships, 4% of refined oil tankers, 2% of container ships, 2% of bulk carriers, and 2% of liquefied natural gas ships are located in the Persian Gulf. The bank maintains a constructive view on tanker shipping, believing that the current reduction in compliant vessel supply has a positive impact on the industry, and the increase in production by oil-producing countries driving up freight demand is also beneficial to the industry, and the bargaining power of major operators is unprecedentedly strong. Regarding container shipping, the bank believes that the current geopolitical tensions have limited impact on supply and demand. Rising oil prices will have a negative impact on container shipping due to increased cost pressures. Although the short-term market sentiment is positive, the bank still expects the industry to enter a downward cycle in the face of oversupply; it recommends selling when stock prices rise. As for the aviation industry, Chinese airlines have not hedged against fuel prices, and the soaring oil prices are a negative factor for airlines. However, if oil prices fall back to normal levels after a rapid increase in the short term, the upward cycle will continue. The bank maintains a constructive view on the industry.