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Yang Ming¡¯s Market Outlook: Key Takeaways

1. Cautious Optimism for Q3

• Tariff Relief: Reduced US-China trade tensions and seasonal demand may boost US West Coast volumes (NRF predicts 6-8% import growth).

• Rate Recovery: June spot rates surpass April-May levels, though long-term stability depends on tariff negotiations.

2. Geopolitical Wildcards

• Middle East Risks: Premier Alliance (Yang Ming¡¯s alliance) is preparing contingencies for potential Hormuz Strait blockade, which could disrupt 30% of global oil shipments.

• Red Sea Uncertainty: No near-term return to Suez Canal routes; continued Cape of Good Hope diversions may absorb excess capacity.

3. Operational Challenges

• Fleet Management: 2024-2025 newbuild deliveries (+60% capacity planned by 2032) offset by carbon regulations and longer transit times.

• Financial Performance:

• Q1 revenue: $15.1B (+4% YoY)

• Q1 profit: $2.58B (-17% YoY)

• May revenue: $4.18B (-27% YoY)

Strategic Implications for Shippers

? Lock Q3 Space Early: Anticipate peak-season capacity crunch.
? Monitor Hormuz Developments: Diversify routes via East Mediterranean ports if tensions escalate.
? Evaluate Red Sea Reopening Risks: A sudden return could trigger rate collapses from oversupply.

"2025¡¯s volatility demands agility¡ªboth in contracts and contingency planning." ¡ª Yang Ming Executive