1. Report Industry Investment Rating - No information about the report industry investment rating is provided in the content. 2. Core Viewpoints of the Report - The spot prices in early April did not meet the announced increase, mainly remaining the same or slightly declining. The Houthi attacks on Israel may expand the conflict to the Red Sea, but the impact on the actual operation routes of European lines is limited. The short - term supply - demand contradiction is not prominent. After Iran established a safety corridor, the passage through the strait has rebounded slightly recently, and the geopolitical premium may be partially reversed. - The outlook is weak and volatile. The online freight rates of Jiyu are expected to be weak and volatile. The SCFIS European line is expected to reach a recent high next week and then decline. The establishment of Iran's passage mechanism may lead to a partial reversal of the geopolitical premium [1][6]. 3. Summary by Relevant Catalogs 3.1 Transaction Logic - According to the latest special report, the spot prices in early April did not meet the announced increase, mainly remaining the same or slightly declining. The Houthi attacks on Israel may expand the conflict to the Red Sea, with limited impact on European lines. The short - term supply - demand contradiction is not prominent. After Iran established a safety corridor, the passage through the strait has rebounded slightly recently, and the geopolitical premium may be partially reversed [1][6]. 3.2 Spot Market Freight Rates - MSK's online freight rate for the AE1 route in the second week of April was $2350/FEU, up $50 from the opening. HPL SPOT's low - end price for the AE2/NE1 route in early April was adjusted down to $2147/FEU, a decrease of $200 from the previous week. Other voyages remained at $3035/FEU, and the online price in the second half of April was also adjusted down to $3035/FEU. The price in May remained at $3535/FEU. - OOCL's price in the first week of April remained at $2781 - 2881/FEU, up $50 - $100 from the end of March. In the second week of April, the high - end online price decreased, and the freight rates above $3000/FEU dropped to $2787 - 2880/FEU. EMC's freight rate remained unchanged, with a special - offer voyage CES on April 1 at $2650/FEU and other voyages in April at $3060/FEU. CMA CGM's online freight rate in early April was $2725/FEU. - MSC's online freight rate in early April remained at $2852/FEU. ONE's online freight rate at the beginning of April dropped to $2561/FEU, basically the same as at the end of March, and was at $3061/FEU from the second half of April to May [2]. 3.3 Passage Through the Strait - On March 29, there were 8 passages through the strait, including 1 dry - bulk carrier operated by Jia Xiang Da Shipping Co Ltd, a shipping company from Hong Kong, China. - On March 27, the VLCC freight rate from the Middle East to China was updated to $10.78/barrel, a 2% decrease from the previous period, and the VLCC freight rate from West Africa to China was updated to $8.26/barrel, a 1.4% decrease. - Iranian officials plan to implement an access and toll system for ships passing through the Strait of Hormuz, establishing a new strait management system similar to Turkey's management of the Bosphorus Strait and Egypt's management of the Suez Canal [3][6]. 3.4 Futures Contract Data | Contract | Closing Price (Points) | Settlement Price (Points) | Price Change (%) | Trading Volume (Lots) | Open Interest (Lots) | Long Position (Lots) | Short Position (Lots) | | --- | --- | --- | --- | --- | --- | --- | --- | | EC2604 | 1719.7 | 1757.1 | 1.0408 | 8177 | 7029 | 4577 | 5171 | | EC2605 | 2005.6 | 2049 | - 0.3478 | 1460 | 2027 | | | | EC2606 | 2532.3 | 2567.2 | 7.7886 | 26147 | 17711 | | | | EC2607 | 2625 | 2670 | 4.3198 | 635 | 1231 | | | | EC2608 | 2539 | 2545.6 | 6.958 | 1308 | 2808 | | | | EC2609 | 1753.7 | 1778.9 | 3.1467 | 111 | 541 | | | | EC2610 | 1834.2 | 1656.5 | 4.3399 | 3462 | 7135 | | | | EC2612 | 1834.2 | 1840.7 | 5.1648 | 214 | 471 | | | [9] 3.5 Spot Freight Rate Data | | SCFI | SCFIS | | --- | --- | --- | | Composite Index (Points) | 1826.8 | | | Northern European Route ($/TEU) | 1703 | 1752.54 (+3.5%) | | Mediterranean Route ($/TEU) | 2764 | | | US West Route ($/FEU) | 2352 | 1263.40(+23.4%) | | US East Route ($/FEU) | 3264 | | [10]

Investment Rating - The report maintains a "Buy" rating for China Ship Leasing (03877) [2][7] Core Insights - The company's 2025 net profit attributable to shareholders is projected at HKD 1.845 billion, a year-on-year decrease of 12%. However, excluding tax impacts, actual earnings show a slight increase of 0.6% year-on-year, indicating that performance meets expectations [7] - The company focuses on environmentally friendly and high-value-added ship types, enhancing fleet competitiveness. In 2025, it signed 10 new ship orders with a contract value of USD 519 million, all being mid-to-high-end vessels [7] - The current high oil transportation market benefits the company's spot and short-term charter vessels, with daily rates for VLCCs exceeding historical highs. Approximately 30 vessels are deployed in the spot and short-term market, which is expected to improve rental income and profitability [7] - The company has 84 vessels under long-term contracts, providing stable cash flow and revenue visibility. The average remaining lease term is 7.4 years, which offers a buffer against market fluctuations [7] - The company's financing costs have improved, with a comprehensive financing cost of 2.91% in 2025, down 62 basis points year-on-year. It successfully issued a 3-year, HKD 1 billion offshore bond, marking its first offshore RMB bond issuance [7] - The total dividend for 2025 is projected at HKD 0.16 per share, corresponding to a payout ratio of 54%, an increase of 15 percentage points from 2024. If this payout ratio is maintained, the expected dividend yield for 2026 is around 7% [7] - The report adjusts the 2026 net profit forecast to HKD 2 billion, down from the previous estimate of HKD 2.2 billion, while introducing a new forecast of HKD 2.2 billion for 2028. The price-to-earnings ratios for 2026-2028 are projected at 7.4, 7.0, and 6.6 times, respectively [7] Financial Data and Profit Forecast - Total revenue projections for 2024 to 2028 are as follows: HKD 4,441 million (2024), HKD 4,083 million (2025), HKD 4,221 million (2026E), HKD 4,358 million (2027E), and HKD 4,629 million (2028E) [6][8] - Net profit attributable to shareholders is forecasted at HKD 2,106 million (2024), HKD 1,845 million (2025), HKD 2,005 million (2026E), HKD 2,115 million (2027E), and HKD 2,247 million (2028E) [6][8] - Earnings per share are expected to be HKD 0.34 (2024), HKD 0.30 (2025), HKD 0.32 (2026E), HKD 0.34 (2027E), and HKD 0.36 (2028E) [6][8]

Report Industry Investment Rating - Not provided Core Viewpoints - Geopolitical situation remains stalemated, with signs of relaxation in strait passage; the market may still be in a wide - range volatile state. Spot prices in April are under pressure, and offline freight rates may drop to $2000/FEU. The central price of European routes may still have the risk of weakening and moving downward. Geopolitical factors over the weekend are the main influencing factors, and the claim by the Houthis to control the Bab el - Mandeb Strait and the establishment of the passage mechanism in the Strait of Hormuz may bring risk impacts. Currently, the trading volume and open interest of European routes are relatively low, and the liquidity activity is not high. Investors are advised to manage their positions and risks well. The market outlook is volatile, and attention should be paid to the progress of the geopolitical situation and changes in the spot market [1][4] Summary by Relevant Catalogs Spot Freight and Contract Volume - Price - **Futures Contract Data**: EC2604 closed at 1771.4, down 0.9628% with a trading volume of 12470 and an open interest of 10730; EC2605 closed at 2043.6, down 1.2324% with a trading volume of 1403 and an open interest of 1847; EC2606 closed at 2417.3, up 4.6709% with a trading volume of 11695 and an open interest of 13831; EC2607 closed at 2535.2, up 3.8421% with a trading volume of 350 and an open interest of 988; EC2608 closed at 2412.4, up 5.1254% with a trading volume of 900 and an open interest of 2797; EC2609 closed at 1696.9, up 1.8486% with a trading volume of 36 and an open interest of 496; EC2610 closed at 1750, up 4.0854% with a trading volume of 1935 and an open interest of 7193; EC2612 closed at 1750, up 2.6328% with a trading volume of 34 and an open interest of 501 [7] - **Spot Freight Data**: The comprehensive index of SCFI is 1707 points. The freight rate of the Nordic route is $1636/TEU, and SCFIS is 1693.26 (+8.8%); the freight rate of the Mediterranean route is $2784/TEU; the freight rate of the US West route is $2054/FEU, and SCFIS is 1024.11 (-7.7%); the freight rate of the US East route is $2922/FEU [8] Geopolitical and Passage Information - **Geopolitical Situation**: The Houthis claim to be ready to control the Bab el - Mandeb Strait. The US - Iran negotiation continues, and the US military action against Iranian power and energy facilities is postponed for 5 days. Iran rejects the US cease - fire plan and proposes 5 conditions for a cease - fire [2] - **Passage Situation**: Iran is seeking a bill to maintain its sovereignty, dominance, and regulatory power over the Strait of Hormuz and generate revenue through toll collection. The Strait of Hormuz, an international energy artery, has begun to resume a small number of ship passages after almost 25 days of near - suspension. On March 25, there were 4 passages in the Strait of Hormuz. The VLCC freight rate from West Africa to China is updated to $8.5/barrel, a 1.8% decrease from the previous period; the VLCC freight rate from the Middle East to China is updated to $11.13/barrel, a 2.4% decrease from the previous period. For Middle East routes, if outside the Strait of Hormuz, land transportation is used to enter the strait; if entering Jeddah Port in Saudi Arabia, ships directly pass through the Bab el - Mandeb Strait [3][4] Spot Quotations - **European Route Spot Freight**: GEMINI: MSK's online freight rate for European routes in early April rose to $2350/FEU, a $10 increase from the previous day. HPL SPOT's freight rate in early April is $2635 - $3035/FEU. OCEAN: OOCL's online freight rate at the end of March is $2737/FEU, and the quote in early April is $2847 - $2880/FEU. EMC's special - price voyage CES on April 1 is $2650/FEU, and the freight rate for other voyages in April is $3060/FEU, a $300 decrease from the previous week. MSC&PA: MSC's online freight rate in early April is $2852/FEU; ONE's online freight rate dropped to $2555/FEU at the end of March and reached $3061/FEU in April [1][2]

Report Summary 1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - The European shipping line shows a weak downward trend. The market is bearish, with most contracts closing lower. The main contracts oscillate at low levels, showing an obvious downward trend. The core factors driving the market decline include the negative impact of the easing geopolitical situation and the arrival of the traditional shipping off - season, which causes some shipping companies to face cargo - booking pressure. However, the increase in operating costs due to rising fuel prices and ship detours provides some bottom support for freight rates. The market shows a "hump" shape, reflecting expectations for the third - quarter peak season but pessimism about the fourth - quarter supply - demand outlook. The contracts have different trends, and the market is highly volatile. In the short term, the market is expected to maintain a range - bound pattern with pressure above and support below, and it is recommended that investors stay on the sidelines [6]. 3. Summary by Relevant Catalogs Shipping Derivatives Data - **China Export Container Freight Rates**: - SCFI - US West: Present value is 1121, previous value was 1109, with a 4.52% increase [1]. - SCFI - US East: Present value is 1636, previous value was 1618, with a 1.11% increase [1]. - SCFIS - US West: Present value is 2922, previous value was 2249, with a - 1.07% decrease [1]. - SCFI - Northwest Europe: Present value is 2054, previous value was 3111, with an - 8.67% decrease [1]. - CCFI Composite Index: Present value is 1707, previous value was 1710, with a - 0.20% decrease [1]. - SCFI - Mediterranean: Present value is 1556, previous value was 1545, with a certain increase (the exact percentage is not clearly presented) [1][2]. - SCFIS - Northwest Europe: Present value is 2784, previous value was 2666, with a certain increase (the exact percentage is not clearly presented) [1][2]. Geopolitical Situation - Trump stated that if Iran fails to fully open the Strait of Hormuz within 48 hours without any threats, the US will destroy and paralyze its power plants [3]. - At least one tanker operator paid about $2 million to Iran for the right to pass through the Strait of Hormuz [3]. - Iranian military sources said that if the US carries out its threat of military aggression against Kharg Island, Iran will launch an "unexpected" counter - attack [3]. - Houthi rebels may join the battle early next week according to Israeli media [3]. - Deterring other straits including the Bab - el - Mandeb and the Red Sea is an option for the "Resistance Front" according to Iranian military sources [3]. Market Condition - The market is in a downward trend [4]. Strategy - It is recommended that investors stay on the sidelines [8]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The market is significantly affected by the Iran - related geopolitical situation, with different trends in various sectors. The prices of many futures varieties have fluctuated, and the market is in a state of high volatility. It is necessary to closely monitor the development of the situation in the Middle East, especially the situation of the Strait of Hormuz and the production and export of Iran [7][11]. - The prices of most commodities are expected to be in a state of high - volatility. Some commodities may continue to rise under the influence of geopolitical factors, but if the situation eases, there may be significant corrections [7][11]. 3. Summary by Related Catalogs 3.1 Shipping Market - After the news that Iran did not block the Strait of Hormuz on March 5, the bullish sentiment in the container shipping European line quickly declined, with concentrated exits of long - position funds and a sharp drop in futures prices, especially in the far - month contracts [7]. - The situation between the US and Iran is still evolving, and the Strait of Hormuz is still de facto not open, and Red Sea navigation is difficult to resume in the short term. It is currently the off - season for container shipping demand, and the war has disrupted the supply - demand structure. Shipping companies have announced price increases, but it is uncertain whether they will be implemented. Maersk has temporarily stopped accepting cargo bookings to and from some Middle Eastern countries [7]. - The EC2604 contract still has the possibility of rising but with large fluctuations. If the situation in Iran eases, there may be a significant decline [7]. 3.2 Crude Oil Market - After the news that the Chinese naval escort fleet successfully escorted three Chinese - owned oil tankers through the Strait of Hormuz on March 5, the bullish sentiment in the domestic crude oil market declined, and the price gap between domestic and foreign crude oil began to narrow [11]. - Iran has stated that it will selectively strike ships in the Strait of Hormuz. The Trump administration is considering measures to deal with the soaring oil prices, such as using the national emergency oil reserve. The US has a limited tolerance for long - term significant increases in oil prices. The IEA believes that the current supply is sufficient and has not launched a reserve - release plan [11]. - The US military has increased intelligence personnel for operations against Iran, and the conflict between the US, Israel, and Iran is expected to last longer, with Brent crude oil prices breaking through $85 per barrel. It is expected that crude oil prices will be in a strong - side shock in the short term, and it is difficult to continue to rise significantly. The domestic oil price increase is expected to be weaker than that of foreign markets, and the price gap will tend to normalize [11]. 3.3 Chemicals Market 3.3.1 Fuel Oil - After the suspension of the Strait of Hormuz, the deliverable high - sulfur fuel oil supply in Asia has tightened, with a reduction of 43,500 tons in fuel oil warehouse receipts. Asian refineries have shifted to importing high - sulfur fuel oil from Russia and Venezuela, reducing their dependence on Middle Eastern raw materials [14]. - Iran's statement of restricting the passage of ships from the EU, Israel, and their allies has cooled the speculative enthusiasm for chemicals. The fuel oil price has risen slightly following the crude oil price, and the bullish sentiment in the market has declined. If the Strait of Hormuz resumes navigation, the futures market may quickly give back some of the geopolitical premium, and high volatility due to capital games should be vigilant [14]. 3.3.2 Asphalt - In the North China region, mainstream refineries have stopped producing and shipping asphalt, resulting in a contraction of regional spot supply. Shandong refineries have continuously raised prices and are strongly committed to price control. The rigid demand in the northern region is weak, and bad weather restricts terminal construction. The market trading is mainly for arbitrage and inventory, and the storage of high - priced resources has slowed down. In the southern region, the prices of major refineries remain firm, but the actual rigid demand support is limited. Overall, the market is in a state where it is easy to rise and difficult to fall, and the subsequent development of the conflict should be monitored [17]. 3.3.3 LPG - The rise in crude oil prices has driven market sentiment. Domestic refineries have limited supply and still have a certain willingness to raise prices. In the East China region, prices have risen across the board, and in Fujian, prices have remained stable. For imported gas, although the arrival of ships at the terminal has increased and the supply is not tight, due to the impact of the conflict on the arrival of ships in the second half of the month, importers are reluctant to sell. Some upstream refineries have reduced production or stopped production, and the supply of LPG is expected to decrease. On the demand side, some downstream plants in South China have stopped production, and there is an expectation of production reduction. It is recommended to pay close attention to the production dynamics of Middle Eastern crude oil and the navigation situation of the Strait of Hormuz. The price is expected to be in a high - volatility state [20]. 3.3.4 Methanol - Urea - The domestic methanol market has a pattern of strong supply and weak demand. Due to the spill - over risk of the Middle East geopolitical situation, many global refineries have reduced production or stopped production, and the production and shipment of Iranian methanol plants have been affected. Only a small part of the methanol production capacity in Iran is currently operating. Urea is mainly priced domestically, with both supply and demand increasing and inventory rising. The overseas urea price has risen significantly due to the geopolitical conflict, but it has little impact on the domestic market due to export restrictions. It is recommended to pay attention to the production and shipment of Iranian methanol plants. The price is expected to be in a high - volatility state, and methanol prices are likely to rise [23]. 3.3.5 Pure Benzene - Styrene - The chemical futures sector has been strong, with many varieties reaching the daily limit. The aromatics series (pure benzene/styrene) is directly downstream of crude oil and naphtha, and is supported by cost - side and supply - shortage factors. The domestic pure benzene market has a slightly improved pattern of reduced supply and increased demand, and April is the maintenance season. The domestic styrene market has a healthy supply - demand situation, with an expected increase and then decrease in the operating rate, and the export volume in March is expected to be optimistic. Some domestic petrochemical plants have reduced production or stopped production in advance. In the context of the ongoing Middle East war, the prices of pure benzene and styrene are likely to rise [27]. 3.3.6 Polyethylene - Polyvinyl Chloride - The polyethylene industry has three main production processes. The geopolitical impact has brought double benefits of cost and import to the domestic polyethylene market. The polyvinyl chloride has two main production methods, and the ethylene - based method is more affected. The domestic polyethylene market has a pattern of weak supply and demand, with high inventory after the Spring Festival and difficulty in cost transfer. The polyvinyl chloride market has a pattern of strong expectations and weak reality, with high operating rates, increased inventory, and weak demand recovery. Some domestic petrochemical plants have reduced production or stopped production in advance. In the context of the ongoing Middle East war, the prices of polyethylene and polyvinyl chloride are likely to rise, but the increase may be less than that of other oil - related chemicals [30][31]. 3.3.7 Propylene - Polypropylene - Propylene is a key downstream product of LPG, and China mainly produces it domestically with multiple production processes. Due to the transportation risk in the Strait of Hormuz and the reduction of Middle Eastern crude oil production, the supply of LPG is expected to shrink, which will affect propylene production. The propylene market is in a game situation, with sellers wanting to raise prices but the proportion of premium transactions decreasing, and buyers being cautious. The polypropylene market has strong cost support due to the rising crude oil price, and the spot price has risen rapidly. The downstream factories have resumed production and have purchasing demand [34]. 3.3.8 Polyester Series (PX - EG - PTA - PR - PF) - Short - term trend: As long as the geopolitical tension in the Middle East does not ease, the high - risk premium of crude oil prices will continue, providing strong cost support for the polyester chain. PX, PTA, and EG prices are expected to be in a strong - side shock. Among them, ethylene glycol (EG) may have the greatest price elasticity, PTA may follow the cost but its processing margin may be squeezed, and short - fiber (PF) may have relatively weak upward persistence. If the Middle East situation eases, the polyester series will decline with the cost. If the crude oil price remains high for 1 - 2 weeks and the downstream demand does not recover, the polyester chain may turn from a strong trend to a shock - decline [36]. - Operational suggestions: For the single - side strategy, be cautiously bullish and avoid chasing high prices. For the arbitrage strategy, consider going long on PTA and short on PF, or going long on EG and short on PTA. For the option strategy, investors who are bullish but worried about a significant decline can consider buying call options or constructing a bull - spread portfolio. For risk management, reduce positions, increase trading flexibility, and industrial customers can use futures for hedging [38][39]. 3.3.9 Rubber Series - Natural rubber: The overall trend of RU and NR this week is weaker than that of BR. The supply in the Southeast Asian rubber - producing areas is in the off - season, and the domestic inventory has been increasing after the Spring Festival. The terminal demand is not optimistic, and the overseas export orders of tire factories have been affected by the geopolitical conflict. The short - term market is expected to be in a shock - consolidation state. - Synthetic rubber: BR has continued to strengthen this week. The geopolitical conflict in the Middle East has led to an expected reduction in crude oil supply, and the market is worried about the increase in raw material costs due to the decline in the load of domestic cracking plants. There is a shortage of raw material supply. The short - term bullish expectation for butadiene rubber still exists, but the export situation has some uncertainties, and the support from the natural rubber market is weakening. It is not recommended to chase high prices. Operational suggestions: Wait and see or build long positions at low prices for RU and NR; for BR long positions, consider buying out - of - the - money put options for hedging [42]. 3.4 Aluminum Industry Chain 3.4.1 Electrolytic Aluminum - Alumina - Since the intensification of the Middle East situation last weekend, the non - ferrous metal sector represented by copper has fully priced in geopolitical risks and declined significantly. However, electrolytic aluminum has performed well. The suspension of the Strait of Hormuz has reduced the supply capacity of Middle Eastern electrolytic aluminum, with the Shanghai aluminum main contract rising by more than 5% this week and the LME London aluminum rising by more than 7%. The structural contradiction between the large electrolytic aluminum production capacity and the low alumina self - sufficiency rate in the Middle East has been exacerbated by the suspension of the Strait of Hormuz, and the impact has been reflected in the production reduction of Middle Eastern electrolytic aluminum [46]. - As the suspension of the Strait of Hormuz continues, concerns about inflation and economic recession in the Shanghai aluminum market have restricted the upward space of electrolytic aluminum. The domestic electrolytic aluminum spot price has risen significantly this week, but the downstream support is limited, and the operating rates of aluminum rods and aluminum sheets and foils need to be further restored [46]. - In the long term, the demand for electrolytic aluminum is supported by the acceleration of new energy and power grid investment, and there is a supply gap due to geopolitical factors and rising power costs. It is recommended to be bullish on Shanghai aluminum and go long at low prices [47]. 3.4.2 Caustic Soda - The caustic soda futures market has risen significantly this week. The market trading logic is still related to the spill - over impact of the Middle East situation, which has led to the reduction of PVC plant loads in East and Southeast Asia and an increase in overseas caustic soda procurement. The domestic futures market sentiment has been boosted [50]. - The domestic caustic soda market has a pattern of high supply and weak demand. The demand is restricted by the limited growth of alumina production capacity and the surplus situation of alumina. The supply is unlikely to decrease in the short term due to the increase in the enthusiasm for chlor - alkali co - production. The inventory is at a high level in recent years. In the long term, the domestic caustic soda production capacity is growing rapidly, and the downstream demand needs to be further recovered. It is recommended to be bearish on caustic soda in general, but be cautious in the short term due to the impact of sentiment and funds, and consider shorting the far - month contracts at high prices [50][51].

Report Summary 1. Report Industry Investment Rating No information provided in the report. 2. Core Viewpoints - The EC futures market is in a state of continuous game regarding future shipping company resumptions. The EC futures market maintains an overall volatile trend, influenced by factors such as shipping company resumptions, geopolitical situations, and seasonal patterns [6][7]. - The spot market is in a downward trend, with freight rates expected to remain stable around the Spring Festival and decline during the post - Spring Festival off - season. Attention should be paid to the resumption plans of shipping companies in the Red Sea [7][8]. 3. Summary by Directory 3.1 Container Shipping - Container Freight Index (European Line) - **Futures Market Data** - Various EC futures contracts show different closing prices, price changes, trading volumes, and open interest changes. For example, EC2604 closed at 1,247.6 points on February 4, up 0.78% from the previous day [4]. - The month - spread structure of futures contracts also shows different price differences and changes [4]. - **Container Freight Rates** - Most container freight rates are showing a downward trend. For example, the SCFIS European Line index was 1,792.14 points, down 3.61% month - on - month and 21.20% year - on - year [4]. - **Fuel Costs** - WTI and Brent crude oil prices show different degrees of month - on - month increases and year - on - year decreases [4]. 3.2 Market Analysis and Strategy Recommendations - **Market Analysis** - MSK announced the resumption of the ME11 route in February, but the geopolitical situation may offset some of the resumption expectations. The market is continuously gaming the future resumptions of shipping companies [6]. - The spot market is in a downward trend, with demand peaking and then declining, and supply increasing in March. Geopolitical situations are volatile, and weather conditions affect port operations [7]. - **Trading Strategies** - Unilateral trading: Temporarily hold off on trading due to the suppression of far - month contracts by resumption progress and the continued game of near - month contracts on geopolitical factors [9]. - Arbitrage trading: After taking profits on the 6 - 10 positive spread at high prices, temporarily hold off on trading and wait for opportunities to roll over at low prices [10]. 3.3 Industry News - On February 3, 2026, Maersk and Hapag - Lloyd announced the resumption of the ME11/IMX India - Mediterranean route via the Suez Canal, and the resumptions of the AE12/SE1 and AE15/SE3 routes are under coordination [11]. - The Italian dockworkers' union announced a 24 - hour general strike on February 6, 2026, covering all ports [11]. 3.4 Related Attachments - There are multiple charts showing the trends of container freight indices and prices, such as the SCFIS European Line index, SCFIS US West Line index, and SCFI comprehensive index [12][19][22].

Shipping Derivatives Data Summary 1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - The EC spot and futures market is in a game pattern intertwined with policies and geopolitical factors. The futures end is driven by short - term sentiment and then experiences a callback due to weakened spot support and calmed emotions. The spot market is in a balance of shipping company quotation adjustment and supply - demand game. The market core logic revolves around three variables: short - term rush - shipping expectations from photovoltaic export tax - refund policy adjustment, Red Sea re - navigation expectations from geopolitical easing, and the differentiated economic recovery in the eurozone. Currently, the market has no clear trend, with short - term being dominated by policy news and sentiment, and long - term depending on global foreign trade recovery, capacity adjustment, and terminal demand improvement [8] 3. Summary by Relevant Catalogs 3.1 Shipping Rate Index - **Current Values**: The current values of SCFI, CCFI, SCFI - US West, SCFIS - US West, SCFI - US East, SCFI - Northwest Europe, SCFIS - Northwest Europe, and SCFI - Mediterranean are 1458, 1209, 2084, 1294, 2896, 1595, 1859, and 2756 respectively [5] - **Previous Values**: The previous values of the above - mentioned indices are 1574, 1210, 2194, 1305, 3163, 1676, 1954, and 2983 respectively [5] - **Percentage Changes**: The percentage changes of the above - mentioned indices are - 7.39%, - 0.09%, - 5.01%, - 0.84%, - 8.44%, - 4.83%, - 4.86%, and - 7.61% respectively [5] 3.2 Shipping Schedule - **FAL1**: The last east - bound return ship passing through the Suez Canal is CMA CGM BENJAMIN FRANKLIN, expected to pass on February 1st with an OMIT detour. The first ship CMA CGM VASCO DE GAMA will resume east - bound return through the Suez on April 6th, corresponding to the Ocean Alliance's Day10 tenth - year route plan starting in April [5] - **FAL3**: The last east - bound return ship is CMA CGM SEINE, expected to pass through the Suez on January 25th, with no resumption plan currently [6] - **MEX**: The last east - bound return ship is CMA CGM GRACE BAY, expected to pass through the Suez on January 22nd, with no resumption plan currently [6] 3.3 Spot Price - **Current Situation**: For the European line 40 - foot container freight, GEMINI Alliance's Maersk Week5 quotes 2430 US dollars, Hapag - Lloyd quotes 2300 - 2500 US dollars; OA Alliance quotes about 2500 - 2650 US dollars, CMA CGM quotes 2793 US dollars, others are about 2600 US dollars; PA Alliance quotes about 2400 US dollars, Yang Ming quotes as low as 2200 - 2435 US dollars; N.SC quotes 2640 US dollars [7] - **Future Outlook**: In the next one or two weeks (end of January - early February), Maersk Week6's opening price drops to 2000 - 2100 US dollars, Hapag - Lloyd maintains 2300 - 2500 US dollars; OA Alliance may slightly drop to around 2500 US dollars; PA Alliance may fluctuate in the range of 2200 - 2400 US dollars; MSC may slightly adjust downward with the market, showing a pre - holiday decline due to the pre - Spring Festival cargo volume vacuum [7] 3.4 Strategy - Short - term short - selling has lower cost - effectiveness. Pay attention to going long on the 06 contract at low levels and short - selling the off - season 10 contract on rebounds [9]

Report Summary 1. Report Industry Investment Rating - Not provided in the given content 2. Core Viewpoints - The EC market is in a downward trend. The current price of the main contract at 1872 points has fully factored in the optimistic expectations for the future SCFIS index (especially the three - period from January 26th to February 9th). If the actual index meets the expectations, there is no more room for growth. If the index fails to meet the expectations due to poor implementation of price increases or is adjusted downwards, the market without fundamental support will face significant correction pressure. Also, with about 30 trading days until the delivery date, the early over - consumption of positive factors will weaken the bullish momentum and highlight the risk of time - value consumption [5]. - The recommended strategy is to wait and see [6]. 3. Summary by Relevant Catalog 3.1 Shipping Derivatives Data - **Freight Rate Index**: The Shanghai Export Container Freight Index (SCFI) has a current value of 1506, up 7.79% from the previous value of 1398; the China Export Container Freight Index (CCFI) is at 1118, up 0.29% from 1115. SCFI - West America has a current value of 1780, up 14.84% from 1550; SCFIS - West America is at 962, up 4.11% from 924; SCFI - East America is at 2652, up 14.56% from 2315; SCFI - Northwest Europe is at 1538, up 9.86% from 1400. SCFIS - Northwest Europe has a current value of 1589, up 5.23% from 1510; SCFI - Mediterranean is at 2737, up 19.00% from 2300 [3]. - **Contracts**: For contracts like EC2506, EC2608, etc., the current values and their corresponding changes compared to the previous values are as follows: EC2506 is at 1331.7, up 0.89% from 1320.0; EC2608 is at 1480.0, down 0.42% from 1486.2; EC2610 is at 1052.0, down 0.85% from 1061.0; EC2512 is at 1606.0, down 1.53% from 1631.0; EC2602 is at 1806.6, down 3.48% from 1871.8; EC2604 is at 1158.0, down 0.75% from 1166.8 [3]. - **Positions**: Regarding the positions of contracts, the current values and their changes from the previous values are: EC2606 position is 2187, up 3 from 2184; EC2608 position is 1199, up 2 from 1197; EC2610 position is 5603, up 202 from 5401; EC2512 position is 1890, down 66 from 1956; EC2602 position is 35004, down 1506 from 36510; EC2604 position is 20867, up 396 from 20471 [3]. - **Monthly Spreads**: For monthly spreads such as 12 - 02, 12 - 04, and 02 - 04, the current values and their changes from the previous values are: 12 - 02 is at - 200.6, up 40.2 from - 240.8; 12 - 04 is at 448.0, down 16.2 from 464.2; 02 - 04 is at 648.6, down 56.4 from 705.0 [3]. 3.2 Market News - **Maersk**: Maersk's Singapore - flagged Maersk Sebarok passed through the Mandeb Strait controlled by the Houthi rebels on its way to the US East Coast this week. Maersk is the latest liner company to "test the waters" of Red Sea navigation. However, the company quickly emphasized that this does not mean a large - scale return to Red Sea routes [3]. - **European Ports**: Major European ports are preparing for the "inevitable" situation of ships sailing around the Cape of Good Hope and those using the Suez Canal arriving at ports simultaneously, which will have a chain reaction on the entire supply chain [3]. - **Hapag - Lloyd**: Hapag - Lloyd abandoned the plan to resume Suez Canal passage on the India - US East Coast route due to customer opposition. As of November this year, Hapag - Lloyd dominated the India - US East Coast (USEC) route, handling about 303,500 TEU of cargo throughout the year, accounting for about 23% of the route's market [3]. 3.3 EC Market - **Market Overview**: The EC market is in a downward trend [4]. - **Spot Prices**: Maersk's quotes for the first week of January are 2500, and 2600 - 2700 for the second week, the same as in early December. Previously, the quote was raised to 3500. QVE raised the quote to 3000, and CMA to 3600 [4].

Group 1: Market Overview - The Middle East MR freight rates experienced a mild increase over the weekend, with the TC17 35kt Middle East/East Africa route index rising to WS230, an increase of 10 points [9] - In the UK-Europe market, MR freight rates saw a significant decline, with the TC2 37kt ARA/US Atlantic Coast route index dropping by 12.5 points to WS136, and the Baltic round trip TCE decreasing by 15% to slightly above $14,000 per day [9] - The US Gulf MR freight rates continued to decline, with the TC14 38kt US Gulf/UK-Europe route falling from WS179 to WS166, and the Baltic round trip TCE dropping from $24,100 to $21,600 per day [9] Group 2: Specific Vessel Types - The Capesize market showed a notable decline, with the Baltic Capesize route (5TC) dropping from $41,571 to $30,731, indicating increasing freight rate pressure [1] - The Panamax market started weakly, particularly in the Atlantic, with the Baltic Panamax route (5TC) averaging $15,194, reflecting limited activity [2] - The Supramax market faced challenges, with the Atlantic and Pacific markets both under pressure, and notable transactions included a 38,000 dwt vessel from Rio de Janeiro to the East Coast of Mexico at $21,500 [4] Group 3: Oil Tanker Market - The LR2 market in the Middle East remained stable, with the TC1 75kt Middle East/Japan route index holding at WS155, corresponding to a TCE of approximately $37,000-$39,000 per day [5][6] - The VLCC market remained stable across all Baltic routes, with the Middle East Gulf to China route (TD3C, 270,000 tons) rate increasing to WS125.78, corresponding to a TCE of $122,676 per day [12] - The Suezmax market showed overall stability, with the Nigeria to UK Continent route (TD20, 130,000 tons) maintaining a rate of WS126, corresponding to a TCE of approximately $61,400 per day [13] Group 4: LNG and LPG Markets - The LNG market softened, with major route rates adjusting after a strong two-month increase, particularly on the BLNG2 US Gulf-Europe route, which saw a significant drop of $16,800 to $115,000 per day [17] - The LPG market exhibited a divergence, with the Eastern market under pressure and the Western market showing increased activity, leading to higher rates on routes such as the Houston-Far East route, which rose by $7.83 to $129.50 [18]

Financial Data and Key Metrics Changes - The company reported adjusted EPS for Q3 2025 of $6.75 per share, compared to $6.5 per share in Q3 2024, reflecting a slight increase [9] - Adjusted net income decreased by $2.7 million to $124.1 million in Q3 2025 from $126.8 million in Q3 2024, primarily due to increased operating costs and decreased dividend income [10] - Adjusted EBITDA increased by 1.5% to $181.6 million in Q3 2025 from $178.9 million in Q3 2024 [13] Business Line Data and Key Metrics Changes - Vessel operating expenses increased by $2.4 million to $52.3 million in Q3 2025, attributed to a higher average number of vessels in the fleet [11] - Daily operating costs slightly increased to $6,927 per vessel per day in Q3 2025 from $6,860 in Q3 2024 [11] - The container segment experienced a $4.3 million decrease in revenues due to lower contracted charter rates [10] Market Data and Key Metrics Changes - The charter market remains robust with an all-time low idle fleet, and demand for mid-size and larger vessels continues unabated [4][5] - The company has secured new charters for vessels extending as far out as early 2028, indicating strong future demand [5] Company Strategy and Development Direction - The company is selectively extending its new building program at below-market prices and has secured multi-year employment for new orders [5] - The company plans to opportunistically invest in the dry bulk Capesize market segment, expecting outsized returns due to supply constraints [8] - A quarterly dividend increase to $0.90 per share was announced, consistent with the policy of yearly increases [8][14] Management's Comments on Operating Environment and Future Outlook - The management noted that the war in Ukraine continues with no end in sight, impacting global trade dynamics [4] - The de-escalation of trade tensions between the U.S. and China has allowed trade to resume, contributing to high container traffic [4] - Management expressed uncertainty about the strength of the market in 2026, indicating that the situation remains fluid [22][23] Other Important Information - The company completed a $500 million unsecured seven-year bond offering with a 6.85% coupon, enhancing its financial flexibility [6][7] - As of September 30, 2025, the company reported cash of $596 million and total liquidity of $971 million [15] Q&A Session Summary Question: Insights on container shipping chartering activity and demand - Management noted that despite lower trade and tariffs, demand for charters remains high due to global production capacity and market dynamism outside traditional Western areas [20][22] Question: Update on Capesize vessel investment and future plans - The company aims to grow its investment in the dry bulk market selectively, focusing on high-quality second-hand vessels rather than new builds [25] Question: Share repurchase program activity - Management confirmed that the share buyback program continues, albeit at a smaller pace, as they believe the stock is undervalued [26][27] Question: Update on investment in Star Bulk and interest in other segments - Management expressed satisfaction with the investment in Star Bulk and indicated no current plans to expand into other segments like Panamaxes or Supramaxes [31]