JP Morgan: Short-term demand for container shipping and ports beats expectations; reiterates "Overweight" ratings on CHINA MER PORT (00144), COSCO Shipping Holdings (01919), OOIL (00316), etc.

JP Morgan released a research report stating that the latest Q3 2026 data continues to show short-term demand beating market concerns, with operational friction still providing meaningful support to utilization and yield. The bank maintains an "Overweight" stance on the Asian shipping and ports sector. The bank noted that the September Logistics Managers' Index (LMI) re-accelerated to 70.2, up 3.6 points month-on-month, with transportation prices remaining elevated and transportation capacity contracting for the tenth consecutive month, consistent with late-cycle restocking impulses; U.S. imports also remained firm, with the Port of Los Angeles recording its busiest three-month period on record from June to August. Global port congestion has risen to approximately 13% of the fleet (about 8% in April), and industry participants continue to report bottlenecks at Asian ports due to concentrated vessel arrivals and typhoons, weakening schedule reliability and absorbing effective capacity. Panama Canal slot and draft conditions have improved somewhat, but last weekend's earthquake served as a reminder that the operating environment can change rapidly; canal authorities currently indicate operations are unaffected, though risks remain skewed to the downside should conditions deteriorate. The bank believes that despite lingering medium-term supply risks, congestion and demand resilience are translating into stronger pricing power and profit margins. On the ports side, CHINA MER PORT (00144) is seen as a beneficiary of sustained or even partially worsening congestion, rated "Overweight." On the Asian liner side, the bank maintains a constructive view and "Overweight" ratings on SITC (01308), COSCO Shipping Holdings (01919), Evergreen Marine (2603.TW), OOIL (00316), Mitsui O.S.K. Lines (9104.JP), and TS LINES (02510), believing their business mix, regional exposure, and execution capabilities will help them capitalize on the current freight rate environment.