Tariff truce boosts global shipping firms

Surprise truce between US and China, temporarily bringing down tariffs on each other’s goods, will probably give way to a surge in transpacific shipping in the coming weeks

This wave of pent-up demand is pushing up freight rates, which had been sliding since the beginning of the year, in turn boosting earnings for shipping companies.

Importers rushing to ship Chinese goods to the US using a short reprieve from paralysing tariffs could provide a much-needed boost to global freighters.

The surprise truce between the US and China, temporarily bringing down tariffs on each other’s goods, will probably give way to a surge in transpacific shipping in the coming weeks, lifting earnings for Cosco Shipping Holdings, AP Moller-Maersk A/S, and Mitsui OSK Lines, said Bloomberg Intelligence analyst Kenneth Loh.