JPM expects airlines to improve, challenged ocean freight in 2025

Dsv A/S

04/12/2024 10:12

** J.P.Morgan expects a mixed 2025 for the transport sector,
with improved airline freight performance and continued
challenges for ocean shipping
    ** JPM forecasts stable airline demand, with passenger
growth of about 6% matching supply growth and prices flat or
slightly increasing
    ** It says challenges in aircraft production and maintenance
could lead to limited carrier capacity, which helps balance the
good supply-demand balance for airlines
    ** However, it sees downside risks for container shipping,
noting supply outgrows demand by more than 20% in ocean freight
    ** It expects this trend to continue into 2026, once Red Sea
container crossings resume, and maintains "underweight" on
Maersk  MAERSKb.CO , ZIM  2SV.F  and Hapag-Lloyd  HLAG.DE  
    ** It keeps "overweight" on DSV  DSV.CO  as it expects the
Danish logistic group to benefit from buying Schenker in Q2 2025
    ** JPM also keeps "overweight" on British Airways owner IAG
 ICAG.L  citing good pricing, cash flow and shareholder return
increase potential, and on DHL  DHLn.DE , though it acknowledges
the German group's unclear growth prospects

 (Reporting by Vera Dvorakova)
 ((vera.dvorakova@thomsonreuters.com))