Latest news with #NorthAsian
Business Times
17-07-2025
- Business
- Business Times
Chinese shipyards' market share falls to 52% amid US port fees concerns, says Bimco
[SINGAPORE] The market share of Chinese shipyards dropped by almost a third from January to June this year amid concerns about upcoming fees on Chinese ships entering US ports, shipping trade body Bimco said. However, China is unlikely to be unseated from its leading position in the near future because of capacity constraint elsewhere as well as the small share of Chinese ships visiting the US, analysts said. Bimco data published on Wednesday (Jul 16) showed that Chinese shipyards bagged 52 per cent of orders placed in the six months, lower than the 72 per cent market share they had enjoyed in July to December 2024. China holds a leading position in the global shipbuilding industry – except in the cruise vessel sector – while South Korea and Japan are the second and third-largest shipbuilding nations respectively, said Bimco. Filipe Gouveia, shipping analysis manager at Bimco, attributed the dip in China's market share to concerns over the impending port fees on Chinese ships in US ports. Port fees, which will be effective from October 2025, will impact both Chinese owners and operators, as well as ships built in China. But smaller Chinese-built ships and those that make short-haul voyages will be exempted from fees. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Even if shipowners try to avoid ordering ships in China due to United States Trade Representative (USTR) fees, there is a limit to the capacity available outside the North Asian country, Gouveia said. The shipbuilding capacity constraint has already led to a large order book with long lead times, especially for larger ships, container ships, gas carriers and cruise ships. Out of this year's orders, 31 per cent are expected to be delivered in 2027, 38 per cent in 2028 and 23 per cent thereafter. Said Gouveia: 'China's dominant position in shipbuilding is unlikely to significantly change soon, but the country could face increasing competition in the medium term. 'Meanwhile, although the US and India currently have limited shipbuilding capacity, both governments are actively working to strengthen their domestic industries. However, even if they succeed, it will take time for them to scale up production.' Tan Hua Joo, container industry analyst at data provider Linerlytica, expects China to retain its global dominance in boxships despite the USTR actions. This is because less than 25 per cent of the global containership fleet call at US ports currently. Although the Chinese market share is slightly down from last year, China's shipyards continue to dominate new containership orders in 2025. Tan cited Linerlytica data which indicated that Chinese yards bagged more than 60 per cent of new orders in 2025. More than 75 per cent of the global fleet will not be affected by the US port fees, and will therefore shipowners will not be deterred from proceeding with newbuilding plans in China, he added. Also, total containerships calling at US ports will shrink further if the USTR proceeds with the planned fees, believes Tan, as operators will switch to increased transhipments and shorten their routes in order to reduce the impact from those fees. A drop in global ship contracting and a shift in the types of ships being ordered have also contributed to the lower market share for China, Bimco said. If global ship contracting had not significantly dropped during the start of the year, China's market share of new orders would have likely been larger. Orders slowed significantly for tankers, gas carriers and bulkers amid weaker freight rates. Containerships and cruise ships were the only large sectors where building increased. South Korea has notably overtaken China in crude tanker shipbuilding so far this year, after pipping the North Asian rival in gas carriers in 2024. Earlier in May, Yangzijiang Shipbuilding posted a drastic cut in its order wins for the first quarter of 2025 – with only six vessels worth US$300 million, compared with 38 vessels for US$3.3 billion for the year-ago period. The Chinese company commented then that US policies and global tariff actions prompted customers to adopt a wait-and-see approach, pushing back their decisions to order ships. Mitsui OSK Lines, owner of the world's largest fleet of liquefied natural gas carriers, earlier said it is hard to buy Chinese vessels for the time being as the US ramps up scrutiny of China's shipbuilding industry.
Yahoo
11-07-2025
- Business
- Yahoo
Why Goldman Sachs thinks Trump's tariffs may not be that bad for Asian markets
Trump's tariffs may pose less threat to Asian markets than initially feared, wrote Goldman Sachs analysts. Tariffs may hurt markets, but if there's clear information about them, investors would feel less negative. North Asian markets face higher exposure, while Southeast Asia markets are less affected. President Donald Trump's tariffs on Asian trading partners may ultimately pose less of a threat to regional markets than investors initially feared, according to analysts at Goldman Sachs. Although the tariffs are expected to have a lingering impact, they could actually support investor confidence. But investors need clarity on what's coming, analysts at Goldman Sachs wrote in a Thursday note. "The fundamental growth impact may not be as negative as markets feared in early 2Q and the actual tariff announcements may serve as a risk-positive 'clearing event', even if the rates imposed are somewhat above current baseline expectations," the analysts wrote. Goldman points to market uncertainty — not the tariffs themselves — as the major concern for investors. "Market performance has been impacted significantly by uncertainty regarding the level of tariffs that may be imposed and the frequent changes to the policy outlook," the analysts wrote. They added that a stable and predictable tariff regime could actually improve investor risk appetite. Trump has notified around two dozen countries that new levies on their goods will begin on August 1 unless new trade deals are reached. Goldman Sachs' analysts said the impact of the US's tariffs may not be as severe as feared, given the differences among regions and sectors. North Asian markets in Taiwan, South Korea, and Japan would face the highest revenue exposure to the US within Asian equity markets. By contrast, Southeast Asian markets and domestically oriented sectors — including utilities, banks, telecoms, and real estate — are far less exposed. "The impact of tariffs will therefore not be evenly distributed," the analysts added. Still, downside risks remain. Regional earnings could drop by 1% for every 5 percentage-point increase in tariffs, Goldman Sachs' analysis shows. "Earnings forecasts for a given market could be impacted through the direct exposure of revenues to the US, the tariff pass-through rate, and the sensitivity of listed companies to the domestic growth backdrop," they wrote. Lower US short-term interest rates and a weaker dollar could partially offset the damage. The Federal Reserve's easing cycle may drive investors toward higher-yielding assets in Asia. A weaker dollar could also help Asian firms that rely on dollar-denominated borrowing, indirectly supporting growth. Asia markets sold off sharply after Trump made his first tariff announcement on "Liberation Day" but mostly recovered. Japan's benchmark Nikkei 225 is up about 1% year to date, while Hong Kong's Hang Seng Index is up 25% thanks to an extra boost from a Chinese AI-driven surge. Read the original article on Business Insider
Business Insider
11-07-2025
- Business
- Business Insider
Why Goldman Sachs thinks Trump's tariffs may not be that bad for Asian markets
President Donald Trump's tariffs on Asian trading partners may ultimately pose less of a threat to regional markets than investors initially feared, according to analysts at Goldman Sachs. Although the tariffs are expected to have a lingering impact, they could actually support investor confidence. But investors need clarity on what's coming, analysts at Goldman Sachs wrote in a Thursday note. "The fundamental growth impact may not be as negative as markets feared in early 2Q and the actual tariff announcements may serve as a risk-positive 'clearing event', even if the rates imposed are somewhat above current baseline expectations," the analysts wrote. Goldman points to market uncertainty — not the tariffs themselves — as the major concern for investors. "Market performance has been impacted significantly by uncertainty regarding the level of tariffs that may be imposed and the frequent changes to the policy outlook," the analysts wrote. They added that a stable and predictable tariff regime could actually improve investor risk appetite. Trump has notified around two dozen countries that new levies on their goods will begin on August 1 unless new trade deals are reached. Goldman Sachs' analysts said the impact of the US's tariffs may not be as severe as feared, given the differences among regions and sectors. North Asian markets in Taiwan, South Korea, and Japan would face the highest revenue exposure to the US within Asian equity markets. By contrast, Southeast Asian markets and domestically oriented sectors — including utilities, banks, telecoms, and real estate — are far less exposed. "The impact of tariffs will therefore not be evenly distributed," the analysts added. Still, downside risks remain. Regional earnings could drop by 1% for every 5 percentage-point increase in tariffs, Goldman Sachs' analysis shows. "Earnings forecasts for a given market could be impacted through the direct exposure of revenues to the US, the tariff pass-through rate, and the sensitivity of listed companies to the domestic growth backdrop," they wrote. Lower US short-term interest rates and a weaker dollar could partially offset the damage. The Federal Reserve's easing cycle may drive investors toward higher-yielding assets in Asia. A weaker dollar could also help Asian firms that rely on dollar-denominated borrowing, indirectly supporting growth. Asia markets sold off sharply after Trump made his first tariff announcement on "Liberation Day" but mostly recovered. Japan's benchmark Nikkei 225 is up about 1% year to date, while Hong Kong's Hang Seng Index is up 25% thanks to an extra boost from a Chinese AI-driven surge.
New Straits Times
07-07-2025
- Business
- New Straits Times
Petronas ships first LNG cargo from Canada to Japan
KUALA LUMPUR: Petroliam Nasional Berhad (Petronas) has shipped its first liquefied natural gas (LNG) cargo from the newly operational LNG Canada facility in Kitimat, British Columbia, Canada. In a statement, the national oil and gas company said the shipment departed for Japan aboard the 174,000-cubic metre Puteri Sejinjang LNG vessel, marking a significant milestone for Petronas' investment in Canada. Datuk Adif Zulkifli, Petronas executive vice president and chief executive office of gas and maritime business, said the first cargo sail-away marks the culmination of years of perseverance to realise the company's vision for Canadian LNG exports to the Asia Pacific region. "We are privileged to commemorate this moment with LNG Canada, our other joint venture partners, the Haisla Nation, Kitimat community and Canadians at large," he added. Designed to be one of the lowest-emissions LNG export facilities in the world, LNG Canada incorporates energy-efficient gas turbines and advanced systems for detecting and mitigating methane leaks. The facility is also powered by the BC Hydro grid, which is predominantly supplied by hydroelectric and renewable energy. These innovations allow the facility to operate with a greenhouse gas intensity about 35 per cent lower than the best-performing LNG plants globally, and around 60 per cent below the global average. This reflects its firm commitment to delivering lower-carbon, responsibly sourced LNG. The development reinforces Petronas' position as a reliable LNG supplier, with LNG Canada serving as a strategic addition to its growing global network of supply nodes. With a 25 per cent equity holding in the project, through its wholly-owned entity North Montney LNG Limited Partnership, LNG Canada is a critical component of Petronas' global LNG strategy to diversify its supply portfolio and increase market flexibility. Strategically located on Canada's west coast and connected to Petronas' upstream gas assets in Northeast Britsh Columbia, LNG Canada offers a direct and efficient shipping corridor to key North Asian markets including Japan, South Korea and China.
Business Times
18-06-2025
- Business
- Business Times
European, North Asian companies also eyeing the potential of JS-SEZ: UOB banker
[SINGAPORE] The Johor-Singapore special economic zone (JS-SEZ) is drawing interest from companies not just from Singapore, but also from Europe and North Asia. Chiok Sook Yin, UOB's head of foreign direct investment (FDI) advisory in the chief executive officer's office, said on Wednesday (Jun 18) that the bank has noticed a number of European and North Asian companies that are using Singapore as a base to tap into Johor's potential, thus creating new opportunities for the bank. The bank is also seeing increasing possibilities in the 'plus-one' strategy – in that companies are expanding beyond operating in 'China plus one' country into 'Vietnam plus one' and 'Europe plus one', she said. Chiok's remarks came in a panel discussion on the role of regional financial institutions in driving foreign direct investments (FDIs) into Asean, held as part of the Nikkei Forum held in Medini in Malaysia's state of Johor. Also speaking on the panel were Thean Szu Ping, executive director at Deloitte Malaysia, and Loong Chee Wei, head of research at Affin Hwang Investment Bank. The panel was moderated by FMT News managing director Azeem Abu Bakar. The panellists also discussed opportunities and concerns that investors might have when setting up in the JS-SEZ. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Affin Hwang's Loong said that companies which are in the supply chain for FDIs entering the JS-SEZ are finding opportunities there, including those in the electronic manufacturing services and medical devices sectors. He also noted rising investments in data centres, which would benefit construction and property companies which are building these data centre parks and developing modern industrial parks. Furthermore, there are also opportunities for companies in the business of outsourced airline maintenance works, he explained. But Loong noted that government policy changes and talent shortages are key concerns for foreign investors. 'The good thing for Malaysia is that since the new government came into power, it has been very stable – and that is boosting confidence,' he said. As for talent shortages, industries have to offer higher salaries, he added. Deloitte's Thean listed three main considerations for foreign investors to look into when it comes to tax: company structures, transfer pricing and immigration and employment. For example, companies may opt to site their manufacturing plant in Johor and their regional office and research and development centre in Singapore. They would also need to consider transfer pricing – the price that a company's division charges another division for goods and services – because they would then be setting up multiple operations in different jurisdictions, she explained. 'Each country would want to tax an appropriate amount of income in that respective country, so setting up a good or correct transfer pricing policy right from the beginning is very important.' Turning to immigration, she said that companies would likely move staff together with their operations to Johor, so they would need to look into the immigration and tax aspects of these individuals. Thean added that specific companies operating in the JS-SEZ would be granted tax incentives that are more attractive than if they were to operate outside the zone, making it 'very beneficial' for the business environment. Nevertheless, many other factors are in play when an investor wants to invest in a specific country, she pointed out. 'Incentives are usually just the icing on the cake.'
