Westports gets cargo lift from Gemini shift, trade turmoil
It said the volume growth resulted in a one-off boost to Westports' trans-shipment (t/s) volume in the first three months of 2025, as Hapag-Lloyd reshuffled its boxes when it joined Gemini and got a permanent boost to Westports' t/s volumes.
'Two of Evergreen's container shipping services were relocated to call at Westports instead of Port of Tanjung Pelepas (PTP) from April 1, 2025 (Evergreen relocated five services from PTP to the Port of Singapore),' it said in a research note today.
CGS MY said Evergreen's move was directly linked to the higher t/s volumes that Gemini's Maersk and Hapag-Lloyd have given to PTP due to Gemini's transition to the hub-and-spoke model.
It also opined that Westports' t/s volumes for 2Q 2025 were boosted by the US trade war with China, which started on April 2, 2025, but was largely suspended for 90 days on May 14, 2025.
It added that the collapse in US-China trade in April caused shipping lines to redeploy their vessels to other trades, but US-China shipping capacity was reinstated after mid-May as US import demand returned.
'The whiplash vessel deployments resulted in greater t/s moves at both Port Klang and Singapore, according to Westports,' it said.
CGS MY said a modest 3.4 per cent year-on-year (y-o-y) recovery to 11.19 million t/s in 2026 is expected, further accelerating to 5.5 per cent y-o-y to 11.80 million t/s in 2027, as manufacturers' efforts to move production out of China to Southeast Asia in light of the US trade war against China would begin to positively impact Malaysia's containerised volumes.
'Y-o-y growth in Average Revenue Per Teu (ARPT) and sequentially stronger container volumes in 2Q25F to be potential share price rerating catalysts for Westport,' it said.
Meanwhile, CGS MY stated that the 15 per cent rise in port charges from July 15, 2025, would also boost Westports' 3Q 2025 results.
'Downside risks include the potential for the US to resume punitive trade tariffs on global economies (ex-China) after the 90-day reprieve ends on July 8, 2025, and a possible global recession that could impact the volumes on all container trade routes,' it added. — Bernama
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