Container volumes in China accelerated 5.9% y/y in May, driven by robust activities at Yangtze and Pearl River Delta regions of 7.6% y/y and 7.2% y/y respectively. HPHT, which has assets in the Yantian, grew at a modest pace of 5.2% y/y, while Hong Kong assets continued their volume contraction at a double-digit pace of 12.7% y/y. The uninspiring performance is reflected in the share price of HPHT, which closed 1% lower in June and skidded 7% in the preceding three months. Meanwhile, container volume at Bohai Rim (including Dalian Port and Tianjin Port) was steady at 2.9% in the latest figure released by the government.

• Changing market sentiments roiled Hong Kong-listed port operators. Dalian Port and Tianjin Port, which enjoyed the equities boom in April, are now reeling from the sharp correction, slumping 36% and 33% m/m respectively.

• The relatively more diversified businesses of Cosco Pacific and CMHI shrank 13% and 10% respectively in the same period. The former has been further weighed down by the unfolding Greek stalemate, whereby it operates Piraeus Piers 2 and 3. If successful in topping bids from APMT and ICTSI for Pier 1, Cosco Pacific would monopolise the Mediterranean transhipment hub. Hence, significant exposure to the macro uncertainty of Greece in the Eurozone has hurt the share price of Cosco Pacific.

• Amid anaemic demand and freight rates hitting historic lows, Ocean Three alliance has announced that it will withdraw one of the four weekly Far East- North Europe services. Pulling out a vessel represents about 12,000 teu volume loss for Westports, which the alliance uses as a major transhipment hub. Macro headwind intensifies as Malaysia probes the accounts of 1Malaysia Development Bhd (1MDB) Fund. Consequently, Malaysian ringgit slumped to a level not seen since the 1997 Asian Financial Crisis. Gateway container volume will be impacted with reduced imports.
Source: Drewry Maritime Equity Research