Sector overview: Shipping/air cargo markets improving; time to also focus on room for medium-term capital efficiency improvement

Research evidence excerpt

Sector overview: Shipping/air cargo markets improving; time to also focus on room for medium-term capital efficiency improvement

Equity Research

23 June 2026 | 3:48PM JST

JAPAN TRANSPORTATION

Sector overview: Shipping/air cargo markets improving; time to also

focus on room for medium-term capital efficiency improvement

Based on our analysis of Jan-Mar 2026 results and recent market trends, we Norihiro Miyazaki

+81(3)4587-9842 |

summarize our views on each sub-sector in our Japan transportation coverage, and norihiro.miyazaki@gs.com

Goldman Sachs Japan Co., Ltd.

revise our earnings estimates for several names and our 12-month target prices for

Ryohei KuritaANA and SG Holdings. Our investment ratings are unchanged. +81(3)4587-1799 |

ryohei.kurita@gs.com

n Highlight (1) - Improvement in shipping market real demand: Shipping

company shares have fallen by an average of -11% since the end of March (TOPIX

+17%), and with signs that Middle East tensions are beginning to ease, we think

the market will move to price in the normalization of supply chains following the

interim agreement to lift the Strait of Hormuz blockade. On the other hand,

shipping market conditions remain strong even excluding the impact of higher

fuel prices (Exhibit 3 to Exhibit 9). Favorable market conditions are supported

by several factors unrelated to the Middle East situation, such as higher

charter rates for car carriers driven by increased exports of Chinese-made cars,

increased iron ore imports by China boosting dry bulk, and volume growth in

containers due to US inventory accumulation. Regarding crude oil tanker market

prices, which surged amid the turmoil in the Middle East, although the situation

remains fluid we assume there will be restocking of crude oil inventories following