On June 6th, Caixin reported that boosted by the main port congestion, the upward earnings expectations of leading shipping companies and other bullish factors, the shipping concept of A shares and Hong Kong stocks has continued to strengthen in recent days. COSCO Shipping AH shares reached a new high.

As of publication, the shipping concept of Hong Kong stocks has continued to rise today. COSCO Ship Port (01199.HK) rose more than 6%, COSCO Shipping Holdings (01919.HK) rose more than 4%, reaching a new high in the year. Pacific Basin (02343.HK) and COSCO Ship Engy (01138.HK) both rose more than 3%, and OOIL (00316.HK) followed with an increase of about 2%.

On the news front, driven by strong market demand, the freight index has risen short-term continuously in the European market futures. Coupled with the recent upward adjustment of earnings expectations for several leading shipping companies, the market's sentiment towards shipping stocks continues to heat up.

Among them, the world's leading shipping giant Maersk has raised its annual earnings expectations twice in a month and is the most concerned company in the market.

According to the latest guidance, Maersk has raised its annual EBITDA forecast before basic interest, tax, depreciation, and amortization to $7 billion to $9 billion, previously estimated at $4 billion to $6 billion.

In addition, Citigroup has raised the annual profit forecast for COSCO Shipping Holdings and OOIL by 74% and 101%, respectively, in their recent report.

On the other hand, news about the worsening of congestion at Singapore's main port has been fermenting in the market recently, gradually becoming the new driving force behind the rise of shipping stocks.

Chen Zhaolin, an analyst at Huafu Securities, pointed out in his report this week that due to the combined effects of weather factors and the early arrival of the peak season, congestion at the world's second-largest container port, Singapore Port, has worsened, with shipping times extending to 7 days and the on-time performance rate expected to deteriorate further, which may support further increases in marine freight rates.

On this issue, Lan Xi, an analyst at Dongzheng Futures, released a report on June 4th stating that current June capacity has become tense, and the likelihood of a significant increase in July freight rates is high.

It is worth noting that during the previous period of rising shipping stocks, the market had already reacted to the surge in demand caused by the early arrival of peak season rush. But obviously, the fluctuations in the shipping market in June have once again reinforced expectations.

Dongzheng Futures believes that the point at which shipping demand weakens is not necessarily before the end of August, but the probability of weakening in September still exists. However, if demand remains relatively strong in August, August freight rates may be pushed up further.

However, Citigroup reminds investors that shipping stock prices have largely reflected the increase in freight rates and profit prospects, and market sentiment may remain strong in the next few months, but investors are advised not to chase the market.