CITIC Securities: Multiple airline routes continue to have tight cabin availability, while global shipping rates continue to strengthen.

CITIC Securities research report stated that American freight rates continue to rise. The SCFI index has risen for seven consecutive weeks, with mainstream FAK prices at $5000-5500 per FEU, and high-end cabin prices exceeding $6200 per FEU. Cabin shortages in the US East Coast are longer than those in the US West Coast. The imposition of tariffs by the United States and new CPSC regulations are prompting companies to rush shipments ahead of schedule, coupled with congestion in the Panama Canal due to low water levels, which is reducing effective capacity. Shipping companies are controlling cabin sales, and cabins are essentially sold out by early July. The peak stocking season for Latin American routes has arrived early, and freight rates are rising across the board. South America's East route has seen the largest increase, with obvious premiums for immediate cabins. Expectations of tariff adjustments in Brazil are driving shippers to concentrate their shipments, while key ports in Latin America have long-term congestion issues, a significant shortage of 40-foot refrigerated containers, slow empty container returns, and consecutive additional charges for GRI and PSS fees by shipping companies, leading to upward pressure on freight rates that is difficult to alleviate. Freight rates in the Asia-Europe and Mediterranean routes are simultaneously strengthening. It is expected that freight rates on both routes will increase again in July; geopolitical disturbances in the Middle East are pushing up transportation costs. With peak season volumes accumulating, ship rotations are being extended by rerouting through the Red Sea, and uncertainties persist in the release of capacity through the Strait of Hormuz. Shipping companies are frequently skipping ports to ensure timely schedules, and cabin supply continues to remain tight.