TS Lines Ltd

Goldman Sachs's Asian shipping equity index has risen about 17% this quarter, while its semiconductor equity index fell about 18% over the same period, reflecting that Asian markets are beginning to look for investment opportunities beyond the AI theme. The main driver came from the Shanghai Containerized Freight Index, one of the benchmark container freight rate indices, which rose for eight consecutive weeks and climbed to its highest level since July 2024. The latest data as of September 18 put the index at about 3,688 points, while freight rates on the route from China to the US East Coast have surged close to the peak seen during the COVID-19 crisis. The main factor is conflict in the Middle East, which has affected shipping both in the Red Sea and the Strait of Hormuz, forcing some vessels to reroute, lengthening voyage times and effectively reducing the number of ships in service. There is also pressure from a rush to ship goods ahead of US tariff measures, demand to move cargo before China's Golden Week holiday, and storms in Asia that add to the risk of port congestion. Among Asian shipping stocks that have stood out are TS Lines, SITC International Holdings and Mitsui OSK Lines, while Jefferies has raised its profit estimates for several Japanese shipping companies after the container market proved stronger than expected. For Thailand, the freight rate for a 40-foot container from Bangkok to major European ports rose from about 3,000 dollars in June data to about 4,700 dollars at the end of August, while the rate to the US East Coast rose from about 2,550 dollars to 11,000 dollars over the same period. This situation is especially important as Thailand's export sector is expanding strongly. The Ministry of Commerce reported that exports in August 2026 were worth 34.6187 billion dollars, up 24.3% from a year earlier and expanding for a 26th consecutive month. The ministry said tensions around the Strait of Hormuz, along with energy prices and shipping costs, are key risks to watch for Thailand's export outlook over the remainder of the year. In the Thai stock market, sectors that may draw interest include RCL, PSL and TTA, but the impact of freight rates differs from company to company. RCL operates container shipping, so it is tied fairly directly to the container freight rate cycle, while PSL focuses on dry bulk shipping and TTA has a range of businesses spanning shipping, offshore services, agricultural chemicals and others. What to watch next is how long high freight rates will last, because the answer will affect everything from shipping lines' profits to exporters' costs, import prices and Thailand's trade competitiveness.