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MAERSK B — AP Moeller - Maersk A/S News Story

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JPM sees further upside for container shippers as bottlenecks keep supply tight

BUZZ-JPM sees further upside for container shippers as bottlenecks keep supply tight

** J.P. Morgan says outlook for global container shipping and ports has become more positive, pointing to upgraded guidance from Maersk MAERSKb.CO and Hapag-Lloyd HLAG.DE and persistent port and inland bottlenecks

** The broker says the market is underestimating effective supply tightness, with congestion, trade imbalances and underinvested infrastructure limiting available capacity even as more vessels enter service

** "The sector is set for a firmer-for-longer rate regime," JPM says, adding pricing power, operational agility and cost discipline should become increasingly important into the Transpacific peak season

** It views recent moves by carriers to return some services to the Red Sea as tactical rather than evidence of a broad normalization, saying a full risk-free return is unlikely before 2027

** "Port congestion is now the main bottleneck, with Shanghai, Singapore, and key European hubs all reporting multi-day vessel queues and yard utilization above 85%," the broker says

** JPM continues to rate both Maersk and Hapag-Lloyd "underweight" despite the more constructive industry backdrop

** Maersk shares rise 5.4% to their highest since August 2022 and Hapag-Lloyd gains 1.3% and is up 10.2% YTD, while European blue-chip index STOXX 600 .STOXX falls 0.2%


(Reporting by Jesus Calero)

((jesus.calero@thomsonreueters.com))

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