Congestion not a major catalyst for container shipping - Citi

Zim Integrated Shipping Services

11/12/2023 10:30

** Citi remains cautious on container shipping sector, saying
the impact of congestion at the Panama and Suez canals on
freight rates into 2024 will not likely be a major catalyst 
    ** According to the broker, the tanker segment is better
positioned for an increase in congestion due to the tight
incoming supply
    ** In Citi's view, for the congestion's impact on container
freight rates will be transitory given the supply and demand
dynamics
    ** It keeps a "neutral" stance on ZIM Integrated  2SV.F ,
and repeats "sell" ratings on Maersk  MAERSKb.CO  and Hapag
Lloyd  HLAG.DE , cutting target price on all three by 42%, 6.5%,
and 30%, respectively
    ** Citi also makes a downward revision of 2024 adjusted
EBITDA estimates for Maersk to $5.6 billion from $6.7 billion,
for Hapag Lloyd to $2.2 billion from $2.6 billion, and to $693
million for ZIM Integrated (from $1.2 billion previously)



 (Reporting by Marta Frąckowiak)
 ((marta.frackowiak@thomsonreuters.com))