“Unprecedented uncertainty” for trade

Commenting on the significant trends of the competitive conditions of the industry in its unaudited financial statement for the second quarter and half year ended 30 June 2018, Hutchison emphasised that a major contributor to this uncertainty is increasing trade tensions and disputes between the US and both China and the European Union.

As a consequence of economic and political uncertainty, the group said it will remain cautious about expected cargo volume for 2018. “The level of uncertainty in political and economic relations as it pertains to trade has increased significantly over the course of the year to date and shows little sign of abating,” said the Group.

It added: “The impact of measures which may arise out of the trade disputes, especially those between the United States and China, on the performance of HPH Trust for the remainder of the year cannot readily be quantified given the level of uncertainty that currently prevails as to both the specific nature; extent; and timing of such measures and the consequent precise impact they may have on local and global trade flows and, as such, HPH Trust’s business.”

The Group noted that consolidation of ownership within the shipping industry has continued alongside the deployment of mega vessels which it said is intended to promote fleet and capacity optimisation and drive cost efficiencies. There will also be increasing emphasis placed on security, fuelled by cyber attacks and associated threats, it predicted.