Core Insights - Ocean and air cargo carriers have temporarily suspended various services connected to the Middle East due to ongoing military conflicts involving Iran, the U.S., and Israel, leading to significant regional turmoil [1] Group 1: Impact on Shipping Operations - CMA CGM has suspended Suez Canal passage and is rerouting vessels via Africa's Cape of Good Hope, halting bookings for hazardous and reefer cargo to several Middle Eastern countries, and implementing an emergency conflict surcharge of $2,000 per twenty-foot equivalent unit (TEU) and $3,000 per forty-foot equivalent unit [3][4] - Other carriers, such as MSC and Hapag-Lloyd, have also suspended bookings and imposed war risk surcharges, with Hapag-Lloyd charging $1,500 per TEU for standard containers and $3,500 for reefer and special equipment [5] - Maersk has paused future sailings through the Bab el-Mandeb strait, opting to reroute its fleet around the Cape of Good Hope [5] Group 2: Market Outlook - The ongoing conflict is expected to delay the return of Red Sea container shipping operations until the security situation improves, with major shipping lines avoiding Suez Canal transit since late 2023 due to Houthi-led attacks [6] - The longer sailing distances are absorbing approximately 2.5 million TEUs of global container shipping capacity, impacting overall shipping efficiency [6] - Freight rates on major global trades are anticipated to soften but will not decline as sharply as previously expected in the latter half of the year due to the limited return of services to Suez Canal transits [7]

Core Viewpoint - Matson reported weaker fourth-quarter results due to lower container volumes, although its box terminal joint venture provided some support [1] Group 1: Financial Performance - Container shipments decreased by 2.3% year-over-year, with a notable 7.2% drop in volumes from China due to trade war impacts [1] - Operating income for ocean transportation fell to $136 million from $137.4 million, with revenue declining to $704.2 million from $742.1 million year-over-year [1] - For the full year, Matson's ocean revenue was $2.74 billion, down from $2.81 billion, and operating income decreased to $455.6 million from $500.9 million [3] Group 2: Joint Ventures and Write-offs - Matson generated $9.3 million in revenue from its SSA Terminals joint venture at U.S. West Coast ports, while writing off $18 million associated with SSAT in 2025 [2] - The company anticipates lower volume year-over-year in the first quarter but expects full-year traffic to be modestly higher than in 2025, driven by solid U.S. consumer demand and a stable trading environment in the trans-Pacific trade lane [2]

Financial Highlights - The company reported a net profit of $90 million for Q4, bringing the full-year profit to $140 million, with an EBITDA of $322 million for the quarter and $943 million for the year [3][4] - Liquidity is strong at $560 million, with covenants for bonds at 31% and for other loan agreements at 44% [3][4] - The company successfully deleveraged and paid dividends, with an interim dividend declared at $0.16, totaling approximately $45 million [6][7] Business Line Performance - The dry bulk segment constitutes 60% of the total fair market value of the fleet, with a contract backlog of $3.05 billion [2][6] - The company has a modern fleet with an average age of 5.9 years, and a significant portion of shipping days in 2026 is expected to be spot exposure [8][10] Market Overview - The company remains positive on dry bulk tankers and offshore markets, while being cautious on container and chemical sectors [13][14] - Dry bulk demand is expected to grow, particularly for iron ore and bauxite, with a ton-mile increase forecasted at 2.7% against a fleet growth of 2.3% [23][24] - The tanker market is currently strong, with high rates achieved for both VLCCs and Suezmaxes, despite a muted supply-demand balance [25][26] Company Strategy and Industry Competition - The company aims to maintain a long-term target of 50% loan-to-value (LTV) ratio, currently at approximately 55% [42][43] - The focus is on operational cash flow and potential dividends, with a strategy to leverage market opportunities without committing to new builds in the tanker segment at this time [48][49] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the dry bulk market, indicating that the current rates are among the strongest seen in the last 15 years [18][19] - The company is cautious about the container market, anticipating a decline in spot freight rates while maintaining a strong position in long-term charters [30][31] - The offshore wind market is expected to see increased demand due to new projects coming online, which will benefit the company's fleet [90][91] Other Important Information - The company has secured a small investment in a logistics company for ammonia-powered vessels, indicating a strategic move towards sustainable shipping solutions [82][83] - The company has a significant orderbook for new builds, with a focus on modernizing the fleet while managing costs effectively [10][11] Q&A Session Summary Question: Impact of strong tanker market on Golden Ocean bridge repayment - Management confirmed that the strong tanker market and the sale of VLCCs facilitated early repayment of the bridge facility, which was initially $1.4 billion, with $420 million cash from tanker sales [40][42] Question: Future dividend payments and leverage targets - The company aims to reduce LTV to around 50% and confirmed that dividends will be considered based on operational cash flow and market conditions [43][45] Question: Potential sales of older vessels - Management indicated that while older vessels may still be sold if high offers are received, the focus is on maximizing current fleet performance rather than aggressive selling [52][56] Question: Long-term charters and market competition - The company is not disclosing specific rates for long-term charters but is open to increasing coverage based on favorable market conditions [68][70] Question: Regulatory impacts from U.S. Maritime Action Plan - Management stated that the impact of the U.S. Maritime Action Plan remains uncertain, but the company is exempt from certain regulations due to its limited port calls in the U.S. [61][63]

Earnings Presentation Quarter Ended December 31, 2025 1 February 25, 2026 30 – 78 – 230 12 – 34 – 106 229 – 29 – 36 192 – 0 – 0 217 – 217 – 217 220 – 230 – 242 242 – 242 – 242 154 – 172 – 204 Forward-Looking Statements Statements in this presentation may be "forward-looking statements" within the meaning of federal securities laws. The matters discussed herein that are forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expecta ...

This presentation contains and will contain forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, TCE rates and Navios Partners' expected cash flow generation, future contracted revenues, future distributions and its ability to make distributions going forward, opportunities to reinvest cash accretively in a fleet renewal program or otherwise, potential capital gains, its ...

Core Insights - Strong container demand and cost efficiencies are mitigating the impact of falling freight rates [1] - There is a notable decline in volumes into North America, especially from China to the U.S. [1] Industry Summary - Container demand remains robust, which is helping to offset the negative effects of decreasing freight rates [1] - The volume of shipments into North America has decreased, with a specific focus on the reduction of imports from China to the U.S. [1]

Core Insights - Global container volumes reached a record high in August 2025, with 16.61 million twenty-foot equivalent units (TEUs), surpassing the previous record of 16.59 million TEUs in May 2025, despite a 0.5% decline in North American imports [1][2] - For the first eight months of 2025, global container volumes totaled 126.75 million TEUs, representing a 4.4% increase compared to the same period in 2024, indicating a consistent high level of global volumes [2] - The CTS Global Price Index fell by 3 points in August to 81 points, continuing a decline since June, reflecting ongoing market adjustments despite strong volume performance [5] Regional Performance - North America experienced a 0.5% decline in imports year-to-date, contrasting with significant growth in other regions, such as Sub-Saharan Africa (up 16.4%), the Indian sub-continent and Middle East (up 8.7%), and South and Central America (up 7.5%) [2][3] - All regions except North America posted export increases, with the Far East and Indian sub-continent and Middle East seeing the largest year-to-date export increases of 6.4% and 5.9%, respectively [4] - Europe recorded a modest export growth of 0.1% year-to-date, following a 6% month-on-month decline in August [4]

Core Viewpoint - SITC International reported strong 1H25 results, with revenue and net profit significantly exceeding expectations, driven by high freight rates and robust container shipping volume growth [1][2]. Financial Performance - Revenue for 1H25 increased by 28.0% YoY to US$1,664 million, while net profit attributable to shareholders rose by 79.7% YoY to US$630 million, resulting in an EPS of US$0.24 [1]. - The gross margin and net margin improved notably YoY, with gross margin rising by 9.3 percentage points and net margin increasing by 10.9 percentage points in 1H25 [1]. Dividend Policy - The company announced an interim dividend payout ratio of approximately 70%, which aligns with its 2024 interim payout ratio, offering attractive dividend yields of 9.5% for 2025 and 7.9% for 2026 [2]. Market Trends - There is a tight supply in the market for small vessels below 3,000 TEU, with only 5.4% of current orders for such vessels, while 11.2% of the fleet consists of vessels older than 25 years [3]. - Demand for small vessels in the container shipping industry has strengthened, leading to high time charter rates and longer charter periods, diverging from spot freight rate trends [4]. Intra-Asia Trade Growth - China's imports and exports to ASEAN countries and Japan grew by 9.4% and 4.5% YoY in the first seven months of 2025, indicating strong intra-Asia freight volume growth [5]. - As a leading player in intra-Asia routes, the company is expected to benefit from this growth, with Clarksons estimating a 3.6% and 3.0% YoY increase in intra-Asia container freight volume for 2025 and 2026, respectively [5]. Financial Forecasts - Due to better-than-expected freight rates, the company's net profit forecasts for 2025 and 2026 have been raised by 38.9% each to US$1.26 billion and US$1.06 billion, respectively [6]. - The stock is currently trading at 7.4x 2025 estimated P/E and 8.8x 2026 estimated P/E, with a target price increase of 15.2% to HK$28, implying 7.7x 2025 estimated P/E and 9.2x 2026 estimated P/E [6].

Investment Rating - The report maintains a cautious outlook on container shipping, downgrading the sector due to structural headwinds and demand uncertainty beyond August [9][10]. Core Insights - The report highlights that US tariffs have limited direct impact on the bulk and tanker markets, while the Baltic Dry Index (BDI) increased by 2% week-on-week, driven by higher Panamax earnings [9][10]. - The report suggests a buy rating for Maersk, a hold for SITC, and a reduction for several other companies in the container shipping sector, indicating a selective investment approach [9][10]. Summary by Sections US Tariff Updates - The Trump administration delayed the 10% baseline tariff and set various tariffs for key trading partners, with significant implications for trade dynamics [2]. - Tariffs on copper and other commodities are set to take effect, which may influence demand in the bulk market [4][53]. Container Shipping Trends - The Shanghai Containerized Freight Index (SCFI) dropped 1.7% week-on-week, marking the fifth consecutive week of decline, although rates to the US showed some recovery [33][34]. - The report notes that while front-loading may temporarily boost cargo flows, significant demand uncertainty looms due to potential tariff impacts [3][9]. Baltic Dry Index and Dry Bulk Market - The BDI rose 2% week-on-week, with Panamax rates increasing by 14% due to strong demand in the Atlantic basin, while Capesize rates fell by 12% due to weak iron ore demand [52][58]. - The report anticipates a 3% growth in the dry bulk fleet but expects flattish demand, leading to a softening of freight rates in the coming years [58]. Freight Rates and Market Dynamics - Container shipping freight rates have shown variability, with the SCFI composite index reflecting a significant year-on-year decline of 43.3% [50]. - The report indicates that bunker prices and time charter rates are also trending, with specific rates for different vessel types being monitored closely [50][57].

Key Takeaways from the Global Container Shipping Call Industry Overview - **Industry**: Global Container Shipping - **Key Players**: Adani Ports, Concor, Maersk, Matson, ZIM Core Insights 1. **Geopolitical Impact**: Geopolitical tensions and recent tariffs by the USA administration are influencing global container freight volumes and rates, which are expected to remain strong in CY25 [1][3][10] 2. **Volume Correlation**: India Port Container volumes show a high correlation with global GDP and container growth, indicating potential benefits for Adani Ports and Concor from rising container trade [1][4][10] 3. **Rate Fluctuations**: Asia-US West Coast rates spiked by 40% following the China-US trade agreement, despite a 30-40% YoY drop in China-US volumes in April [2] 4. **Demand Dynamics**: Non-China-US trade lanes experienced a 4-5% demand growth, offsetting the decline in China-US volumes, leading to overall positive demand growth globally [2] 5. **Future Projections**: Global container rates increased by 136% YoY in CY24 due to Middle East tensions, but are expected to moderate by 30% YoY in CY25, with rates remaining elevated [3][10] Company-Specific Insights 1. **Adani Ports Performance**: In FY25, Adani Ports' container volumes rose by 22% YoY, contributing to 42% of its total volume mix, while overall port volumes increased by 11% YoY [4][10] 2. **Concor's Volume Growth**: Concor's volumes are heavily reliant on EXIM trade, which constitutes 81% of its total volumes, although its growth was impacted by a weak rail modal share [4] 3. **Trade Deal Potential**: An interim trade deal between India and the US is anticipated by June 25, which could further boost port container volumes ahead of the peak season [5] Additional Considerations 1. **Inventory Trends**: US retail inventories have been building at a moderate pace of +4.5% YoY, compared to sales growth of +4%, indicating a key dynamic to monitor [2] 2. **Capacity Adjustments**: Approximately 12% of global container capacity has been removed due to rerouting around the Cape of Good Hope, impacting Asia-Europe trade significantly [3][10] 3. **Suez Canal Normalization**: A return to normalcy in the Suez Canal could lead to excess capacity and a potential decline in container rates [3] This summary encapsulates the critical insights from the global container shipping call, highlighting the interplay between geopolitical factors, trade dynamics, and company-specific performance within the industry.