According to the research report released by Goldman Sachs, it gives a "sell" rating to COSCO Shipping Holdings (01919) with a target price of HKD 7.6 in the next 12 months.

The latest Shanghai Containerized Freight Index (SCFI) increased by 0.5% during the past week. However, the European route, which was most severely affected by the red sea disturbance, decreased by 0.5% compared to last week. This decline was earlier than the market's expectation of August or September, and is considered to be due to the rebalancing of supply and demand in the industry. The supply of this industry has increased by 0.9% per month from the beginning of the year until now.

The bank said it expects freight rates in July to not drop significantly, but based on feedback from its customers, although they also expect little change this month, there is a gap between the European route freight rates and expectations, which may increase concerns about the overall container transportation rates nearing a peak, and the bank believes that this may prompt some to profit from selling.