HK Stock Market Move | COSCO SHIPPING Energy Transportation (01138) rose nearly 4% as oil transportation rates continue to surge to high levels. The company is likely to fully benefit from the upward cycle.

COSCO SHIPPING Energy Transportation (01138) rose nearly 4%, and as of the time of writing, it was up 3.75%, priced at HKD 17.98, with a trading volume of HKD 151 million. On the news front, dark shipping has aided marginal improvements in supply and demand as well as boosted shipowner confidence, leading freight rates to continue climbing. Last week, the VLCC TCE for routes from the US Gulf and West Africa soared again to USD 210,000-220,000, while the TCE for Middle Eastern routes skyrocketed to USD 700,000. Cathay Haitong believes that geopolitical factors are strengthening the long-term logic of oil transportation, with a mid-term recovery in the Strait expected, allowing oil shipping to return to a high and sustainable boom, while also benefiting from Iranian sanctions being lifted, enhancing options in a highly prosperous compliance market. Industrial pointed out that from June to August 2026, tanker freight rates are expected to remain high: the weighted average freight rate for VLCCs is projected to increase by 340.99% year-on-year, and the companys Q3 performance is expected to continue to grow. Looking ahead, if the Strait of Hormuz reopens, the demand for inventory replenishment from Eurasian refineries and the de-inventorying needs of Middle Eastern oil-producing countries are likely to lead to a simultaneous rise in both the volume and price of tanker transport, effectively transmitting into sectors such as refined oil, domestic oil products, and LNG. As one of the world's largest energy shipping service providers, the company is poised to fully benefit from this round of upward oil shipping cycle.