Investment Rating - The report maintains a "Buy" recommendation for the container shipping sector due to high freight rates and increased demand driven by the recent US-China tariff adjustments [1][3]. Core Insights - The recent US-China trade talks resulted in the cancellation of 91% of retaliatory tariffs, leading to a surge in bilateral trade and a nearly 300% increase in container shipping bookings from China to the US [1][11]. - Freight rates on North American routes have significantly increased, with Shanghai to US West Coast and East Coast rates rising by 31.7% and 22.0% respectively [2][12]. - The report anticipates a short-term surge in container demand due to a stocking wave, which may challenge port logistics and further influence freight rates [3][15]. Summary by Sections Section 1: US-China Tariff Developments - The US and China agreed to suspend 24% of reciprocal tariffs for 90 days, leading to a rapid increase in trade and shipping demand [1][11]. - Container shipping bookings surged from an average of 5,709 TEUs to 21,530 TEUs within a week following the tariff adjustments [1][11]. Section 2: Market Demand and Freight Rates - The demand for shipping services has rebounded sharply, with significant increases in spot booking prices for shipping containers [2][12]. - As of May 16, 2025, the spot rates for shipping from Shanghai to the US West Coast and East Coast reached $3,091 and $4,069 per FEU, reflecting increases of 31.7% and 22.0% respectively [2][12]. Section 3: Investment Recommendations - The report recommends investing in leading container shipping companies such as COSCO Shipping Holdings, which is expected to benefit from rising freight rates on US routes [3][15]. - It also highlights the potential of regional shipping companies in Asia, suggesting that the ongoing trade tensions may sustain high demand in this segment [3][15]. Section 4: Industry Data Tracking - Recent data shows a 4.8% year-on-year increase in domestic air passenger volume, indicating a recovery in the aviation sector [16][20]. - The report notes a 10% increase in the Shanghai Container Freight Index (SCFI) and a 4% increase in Very Large Crude Carrier (VLCC) rates, reflecting overall positive trends in the shipping industry [36][37].

Investment Rating - The report maintains a "Recommendation" rating for the aviation industry, indicating an expectation of outperforming the benchmark index by more than 5% in the next 3-6 months [6][54]. Core Insights - The overall air traffic volume for five listed airlines in April continues to recover, with international routes showing high growth [1]. - Domestic demand remains resilient, supported by endogenous growth and ongoing recovery in international routes [6]. - The report highlights the positive impact of falling oil prices on operational costs, further enhancing profitability for airlines [6]. Summary by Sections Airline Data Analysis - In April, the ASK (Available Seat Kilometers) growth year-on-year was led by Spring Airlines (12.5%), followed by Eastern Airlines (9.7%), Southern Airlines (8.8%), Air China (5.3%), and Juneyao Airlines (2.8%) [1]. - The RPK (Revenue Passenger Kilometers) growth year-on-year was highest for Eastern Airlines (15.6%), followed by Southern Airlines (12.1%), Spring Airlines (9.3%), Air China (8.6%), and Juneyao Airlines (6.3%) [1]. Domestic and International Routes - For domestic routes in April, ASK growth was led by Spring Airlines (11.2%), while Juneyao Airlines saw a decline of 10.3% [2]. - In contrast, international routes showed significant growth, with Juneyao Airlines leading at 60.0% ASK growth year-on-year [2]. Fleet and Capacity - As of April 2025, the total fleet of the five listed airlines increased by 3 aircraft, representing a year-on-year growth of 3.0% [4]. - The report indicates that the supply remains constrained, which could support pricing power for airlines [6]. Load Factor - In April, the load factor was highest for Spring Airlines at 88.2%, while Air China had the lowest at 81.3% [3]. - Cumulative data for the first four months shows Spring Airlines maintaining a load factor of 90.0%, indicating strong operational efficiency [3]. Market Performance - The total market capitalization of the aviation sector is reported at 730.725 billion yuan, with a relative performance of -3.3% over the past month [5]. - The report emphasizes the potential for recovery in the aviation sector, particularly for low-cost carriers and those with strong international routes [6].