13 October 2025 | 10:42AM HKT Equity Research CHINA SHIPPING AND SHIPBUILDING Special port fees on US vessels announced; potential tanker freight rate upside; Buy COSCO Energy +852-2978-0726 | herbert.lu@gs.com Goldman Sachs (Asia) L.L.C. Simon Cheung, CFA +852-2978-6102 | simon.cheung@gs.com Goldman Sachs (Asia) L.L.C. Dorothy Wong +852-2978-1879 | dorothy.wong@gs.com Goldman Sachs (Asia) L.L.C. c45a43530f604d12bcb9a82b5aa6b9f6 On Oct 10, China's Ministry of Transport announced plans to charge special port ...

Core Insights - SkyWest (SKYW) is experiencing significant challenges due to rising operating expenses and a deteriorating liquidity position, negatively impacting its profitability and attractiveness to investors [1] Financial Performance - The Zacks Consensus Estimate for SkyWest's earnings for the December quarter has been revised downward by 3.02% over the past 60 days, and for 2026, the estimate has been revised down by 2.09% [2] - SkyWest's shares have decreased by 2.9% year-to-date, while the Transportation - Airline industry has seen a 3% increase [3] - In Q2 2025, total operating expenses surged by 15.7% year-over-year, primarily due to rising labor and maintenance costs [6][7] - Labor costs accounted for 45.1% of total expenses, increasing by 9.9% from the previous year, while maintenance expenses rose by 30.3% year-over-year [8] Liquidity Position - SkyWest's current ratio has declined from 1.17 in 2022 to 0.73 in Q2 2025, indicating a weakening liquidity position and raising concerns about its ability to meet short-term obligations [9][7] Industry Context - SkyWest currently holds a Zacks Rank of 4 (Sell), and the industry rank is 157 out of 243, placing it in the bottom 35% of Zacks Industries [5] - The performance of the industry group is crucial, as studies indicate that 50% of a stock's price movement is related to its industry performance [6]

, /PRNewswire/ -- Danaos Corporation (NYSE: DAC), one of the world's largest independent owners of containerships, announced today that William Repko has resigned from Danaos Corporation's board of directors, effective as of October 13, 2025. Mr. Repko's resignation was not the result of any dispute or disagreement with the Company or the Company's Board of Directors on any matter relating to the operations, policies or practices of the Company. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ New ...

Cryptocurrency Market - Major cryptocurrencies are rebounding, with the total market value climbing over 6% to surpass $4 trillion, driven by comments from President Trump and Vice President Vance signaling openness to a trade deal with China [4][5] - Bitcoin recovered to around $115,000 after dipping below $105,000, while Ether rose to about $4,100 after falling below $3,500 [4] - Notable crypto gainers include XRP (+4%), Binance Coin (+3.3%), and Stellar (+1.3%) [4] Xiaomi Corporation - Shares of Xiaomi Corp dropped over 7% following reports of a car crash involving one of its SU7 electric sedans, which failed to open after a fiery crash in Chengdu, China [7][8] - The company had previously announced a software update for over 115,000 SU7 electric sedans to address potential safety issues related to assisted driving features [8] UPS and Shipping Issues - UPS is facing significant challenges with thousands of U.S.-bound packages stuck in hubs, leading to the disposal of some shipments due to new customs requirements imposed by the Trump administration [9][10] - The end of the "de minimis" tariff exemption has complicated the shipping process, with packages valued at $800 or less now subject to tariffs and fees, causing delays and confusion for customers [10][11] - UPS attributed the issues to "missing or incomplete information" required by new U.S. import regulations, which has contributed to a 30% decline in its stock price this year [11]

Core Points - Okeanis Eco Tankers Corp. announced the resignation of directors Robert Knapp and Joshua Nemser, effective October 10, 2025, with no disagreements cited [1] - The board of directors maintains a majority of independent directors, and the composition of the committees remains unchanged, except for the remuneration committee [2] - Chairman Ioannis Alafouzos expressed gratitude for the contributions of the resigning directors, who had been with the company for over seven years [3] Company Overview - Okeanis Eco Tankers Corp. is a leading international tanker company focused on seaborne transportation of crude oil and refined products, incorporated on April 30, 2018 [4] - The company is listed on both the Oslo Stock Exchange under the symbol OET and the New York Stock Exchange under the symbol ECO, operating a fleet of six Suezmax tankers and eight VLCC tankers, all equipped with modern scrubbers [4]

Group 1: Cryptocurrency Market - The cryptocurrency market rebounded sharply after a significant selloff, with major assets like Bitcoin and Ethereum recovering as President Trump eased U.S.-China trade tensions [3][4] - Bitcoin's price fell to as low as $105,896 before recovering to $112,000, while Ethereum dropped 17% and XRP over 30% during the downturn [4] - The overall crypto market capitalization decreased by 9.8% to $3.74 trillion, with nearly $19 billion in leveraged positions liquidated within 24 hours [4] Group 2: U.S.-China Trade Tensions - Ongoing trade disputes between the U.S. and China are impacting global commodity markets, with significant declines in prices for crude oil, iron ore, and soybeans [7][8] - China's Customs Vice Minister reported that lower global commodity prices contributed to a 2.7 percentage point decrease in overall import growth in the first three quarters of 2025 [8] - Iron ore prices fell over 10% in the first half of the year, with futures on the Dalian Commodity Exchange dropping to 699 yuan ($95.80) per metric ton [9] Group 3: Taiwan's Defense Initiatives - Taiwan announced the development of a new multi-layered air defense system called "T-Dome" to enhance its military capabilities against threats from China [5][6] - The T-Dome system will integrate advanced radar and missile interception technologies, replacing aging infrastructure and complementing existing Patriot systems [6] - Taiwan plans to increase defense spending to 3% of GDP next year and 5% by 2030, with collaboration from U.S. defense contractors like Lockheed Martin and Northrop Grumman [6] Group 4: North Korea's Military Developments - North Korea is reportedly receiving technical assistance from Russia for its submarine development, raising concerns about regional security [13][14] - Intelligence suggests that Russia may have supplied North Korea with nuclear reactor modules from decommissioned submarines in exchange for artillery shells and missiles [14] Group 5: Global Commodity Market Impact - Oil prices initially fell to a five-month low due to escalating U.S.-China tensions but later recovered slightly, with Brent futures settling at $62.82 per barrel [10] - The U.S. and China are engaged in a shipping dispute, with China imposing special port fees on U.S.-linked vessels starting October 14 [12]

Industry Policy & Regulation - The European Union and US are in disagreement over a proposal to reduce carbon emissions in the global shipping industry [1] - The US is threatening to penalize countries that support the EU's proposal [1]

Market Overview - U.S. financial markets are facing significant challenges due to escalating trade tensions, political gridlock, and signs of weakening consumer and corporate financial health [2][3] - The S&P 500 fell 2.7%, the Dow Jones Industrial Average dropped 1.9%, and the Nasdaq Composite decreased by 3.6% following President Trump's tariff threats on Chinese imports [3][8] Cryptocurrency Impact - The cryptocurrency market experienced its largest single-day liquidation event, with over $19 billion in leveraged positions wiped out, as Bitcoin fell from above $122,000 to around $102,000 and Ethereum dropped below $3,500 [4][8] Economic Sentiment - A prolonged government shutdown is contributing to economic uncertainty, causing flight delays and affecting thousands of workers, which in turn impacts consumer sentiment [5][8] - The University of Michigan's sentiment index showed a 0.1% monthly decline, marking the third consecutive month of decline due to inflation and trade war concerns [6][8] Consumer Financial Health - Rising delinquencies in personal finances are evident, with auto loan delinquencies reaching crisis levels, and total U.S. household debt hitting a record $17.5 trillion [7][8] Corporate Financial Pressures - The S&P 500 free cash flow yield has dropped to 2.58%, the lowest since the Global Financial Crisis, indicating reduced financial flexibility for companies [9][8] - The U.S. leveraged loan market is under pressure, with investors demanding better terms, leading to deal pullbacks [9] Safe-Haven Assets - U.S. gold ETFs have surged to a record $225 billion in holdings, doubling in value as investors seek safe-haven assets amid market volatility [14][8] Currency Trends - The Yuan is gaining traction as an alternative to the U.S. dollar, with foreign investors increasingly favoring it, reflecting a shift away from the dollar amid trade policy uncertainties [15]

Group 1: Tariff Announcements and Market Reactions - Donald Trump announced a new 100% tariff on Chinese goods, effective November 1, which would increase the total tariff rate to approximately 130% [30][31][32] - Following the tariff announcement, US stocks experienced significant declines, with the S&P 500 dropping 2.71%, marking its worst trading day since April [4][34] - The Nasdaq fell by 3.56% and the Dow Jones Industrial Average decreased by 1.9%, reflecting broader market fears regarding the potential escalation of the US-China trade war [3][35] Group 2: Cryptocurrency and Commodity Impact - Cryptocurrencies plummeted in value, with Bitcoin falling over 10% to below $110,000 before recovering slightly, while Ethereum dropped by 11.2% [5][24] - Soybean prices fell by 1.9% to $10.0275 per bushel, as investors anticipated reduced Chinese purchases of US soybeans due to the trade tensions [25][26] - The US dollar weakened by 0.69% against a basket of currencies, indicating market uncertainty following the tariff threats [29] Group 3: Rare Earths and Export Controls - China's recent export controls on rare earth minerals have raised concerns in the US, as China produces approximately 90% of the world's rare earths, critical for various industries [12][13] - Trump criticized China's export restrictions, stating that the US would impose export controls on "critical software" in response [9][32] - Analysts suggest that the US's reliance on Chinese rare earths could undermine its manufacturing base and economic growth, particularly in AI development [46][47] Group 4: Market Sentiment and Future Outlook - Market analysts express concerns that the renewed trade tensions could lead to a recession in the US, with the potential for higher inflation due to increased import costs [72] - The volatility in the stock market has led to a surge in the "fear index," indicating heightened investor anxiety regarding the economic outlook [71] - Some analysts believe that the current situation may be a negotiating tactic by the Trump administration, but the risk of retaliation from China remains significant [16][47]

Core Viewpoint - UPS is facing challenges in clearing imported packages due to rapidly changing customs regulations, leading to potential disposal of parcels that cannot be cleared [1][11]. Group 1: Customs Challenges - The company has reported difficulties in navigating the customs process due to ongoing trade disputes and shifting import rules [1][11]. - New procedures have been implemented for handling parcels that are stranded at UPS hubs due to missing information or incomplete paperwork [2][11]. - Approximately 90% of packages that arrive on the first day of entry are cleared, but the recent changes have led to an increase in parcels unable to clear customs [5][8]. Group 2: Company Response - UPS has stated that if necessary information cannot be obtained, packages may either be returned to the original shipper at their expense or disposed of in compliance with U.S. customs regulations [3][11]. - The company is making multiple attempts to obtain the required information to clear delayed shipments and is committed to serving customers despite regulatory challenges [6][8]. - UPS continues to work on bridging the understanding gap related to new requirements and aims to expedite package delivery while complying with federal customs regulations [5][8].