Core Viewpoint - The shipping company COSCO Shipping Lines has denied reports of its vessels returning from the Strait of Hormuz, while it has resumed booking services for certain Middle Eastern countries amidst rising shipping costs due to geopolitical tensions and additional fees [1][4]. Group 1: Shipping Operations - Two COSCO Shipping Lines vessels, "Zhonghai Indian Ocean" and "Zhonghai Arctic Ocean," are still located in the Persian Gulf, contrary to reports of their return [1] - COSCO Shipping Lines has announced the resumption of new booking services for specific countries in the Middle East, including the UAE, Saudi Arabia, Bahrain, Qatar, Kuwait, Iraq, and Oman [1][2] Group 2: Market Conditions - The total number of vessels in the Persian Gulf accounts for less than 2% of the global total, with oil and product tankers making up about 5% [1] - Container shipping rates in the Middle East have more than doubled since the end of February due to various fuel surcharges and war-related fees, with only two shipping companies currently accepting orders [4] - Many customers are hesitant to place orders due to uncertainties regarding timely deliveries and potential rerouting of containers [4] Group 3: Industry Adjustments - Major global shipping companies, including CMA CGM, Maersk, Mediterranean Shipping Company, Hapag-Lloyd, and ONE, have announced the implementation of emergency fuel surcharges starting from late March across main and branch shipping routes [5]

Core Viewpoint - Cathay Pacific reported a net profit of HKD 10.828 billion for the year 2025, representing a year-on-year increase of 9.5%, maintaining its position as the most profitable airline in China despite geopolitical challenges affecting the industry [3]. Group 1: Financial Performance - The company announced a profit-sharing scheme for employees, distributing over 11 weeks of eligible wages [3]. - The growth in profit is attributed to increased capacity, stable passenger volume, and strong cargo demand [3]. Group 2: Geopolitical Impact - The ongoing geopolitical situation, particularly in the Middle East, has led to unpredictable changes in passenger and cargo flow, as well as fluctuations in aviation fuel prices [4]. - Fuel prices have reportedly doubled in March compared to January and February, prompting the company to adjust fuel surcharges [4]. - Cathay Pacific is currently maintaining a 30% fuel hedging ratio to mitigate fuel price volatility [4]. Group 3: Operational Adjustments - The company has suspended flights to Dubai and Riyadh until the end of March and is reallocating capacity to other regions, particularly Europe, where flight frequencies to London are being increased [4]. - The shift in passenger routes is evident, with many travelers from the Middle East now opting to transit through Hong Kong to Europe instead [5]. - Cargo operations are also affected, with increased demand for shipments from Hong Kong and Southeast Asia to Europe, although operational adjustments are required due to changes in fuel loading practices [5]. Group 4: Market Outlook - Despite geopolitical tensions, the overall market demand in Hong Kong and the Greater Bay Area remains resilient, although e-commerce demand has slowed following the U.S. cancellation of small tax exemptions [5]. - The company plans to continue expanding its route network, expecting a 10% increase in passenger capacity, which will also support cargo capacity growth [5]. - There is a noted shift in passenger preferences towards premium travel options, prompting the company to invest in improving cabin products and customer experience [5].