COSCO SHIP ENGY (01138) opened over 3% higher today. As of press time, the stock gained 3.09% to HK$9.34, with a trading volume of HK$4.0722 million.

On the news front, during the 2025 interim results briefing on September 22, COSCO SHIP ENGY stated that tanker freight rates have recently experienced a significant surge, positively impacting fleet revenues for tanker owners globally. The company's VLCC fleet is currently operating predominantly in the spot market.

JPMorgan believes that COSCO SHIP ENGY is China's largest tanker operator and one of the world's leading crude oil, refined products, and liquefied natural gas (LNG) transportation companies. As the energy transportation arm of China COSCO Group, the company operates a diversified fleet. Its scale, relatively young fleet age profile, and growing LNG business provide downside protection in volatile freight markets while positioning the company to benefit from multi-year upcycles.

Huayuan Securities pointed out that VLCC TD3c TCE reached $96,000 per day on September 16, 2025, and maintained high levels in subsequent days. This freight rate level represents the best September VLCC rates since 1990 (the September 2004 peak also reached $96,000 per day). Next week marks the final complete working week before China's National Day holiday, when Middle East October cargoes may concentrate shipments. Combined with VLCC available capacity reaching its lowest level in the past year over the next 30 days, VLCC freight rates may continue rising next week, potentially breaking through the September rate highs since 1990.