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S&P Global: US Tariffs to Dampen CN Port Firms' Cargo Vol. Sharply, but Adequate Financial Flexibility Remains to Cushion Impact
2025-04-24 11:50:14 Christopher Yip, Managing Director, Sector Lead, China Local Government, Infrastructure & Utilities Ratings at S&P Global, believed that U.S. tariffs will greatly reduce cargo volumes for Chinese port companies, particularly on China-U.S. routes, while also impacting their operational performance. However, S&P Global noted that Chinese port companies still have adequate financial flexibility to cushion these adverse factors. He elaborated that the above forecast is primarily based on three factors: first, Chinese port operators have built substantial financial buffers over the past few years through strong cargo volume growth and prudent expenses management; second, these companies’ route portfolios are not solely focused on the U.S. market, with most having fairly diversified routes and having expanded into markets such as Southeast Asia in recent years; and third, the redirection of Chinese cargo to markets like Southeast Asia may, in the short term, temporarily boost cargo volumes for these port companies, helping to stabilize throughput. ~ AAStocks Financial News Web Site: www.aastocks.com | |