Ge Long Hui·2026-03-05 13:15Core Viewpoint - The shipping sector in A-shares has experienced significant volatility due to the ongoing conflict in the Middle East, leading to operational adjustments and market reactions among various shipping companies [1][5]. Group 1: Impact on Shipping Companies - China Ocean Shipping Group (COSCO) announced the suspension of new bookings for several routes to the UAE, Qatar, Bahrain, Iraq, Saudi Arabia, and Kuwait due to restrictions in the Strait of Hormuz [1][2]. - COSCO's fleet capacity is 135 million deadweight tons across 1,660 vessels, ranking first globally, with operations covering over 1,500 ports in more than 160 countries [2]. - Other companies like China Merchants Energy Shipping and China Merchants Jinling Shipyard reported normal operations but acknowledged potential impacts from the conflict, particularly in energy transportation [2][3]. Group 2: Market Reactions and Price Fluctuations - The shipping index saw a sharp decline of 2.77% on March 5, following a brief rebound earlier in the day, reflecting market uncertainty [1]. - The shipping sector experienced rapid fluctuations, with the container shipping index (European line) hitting a ceiling for two consecutive days before a significant drop on March 4 [5][6]. - Analysts noted that the geopolitical situation has led to increased freight rates, with the VLCC (Very Large Crude Carrier) market showing strong demand and rising prices due to supply constraints [6][7]. Group 3: Strategic Responses and Future Outlook - Companies are adopting flexible pricing strategies and focusing on high-potential markets to enhance resilience against market volatility [4]. - The ongoing conflict is expected to elevate global shipping prices in the short term, with potential long-term impacts on supply chains if the situation persists [6][7]. - Analysts suggest that the current high freight rates may continue, but the influx of new VLCC orders could create pressure on valuations starting in late 2026 [7].