US-China trade war to hit Hutchison profit

In its 2018 financial results presentation for the period ended 30 September 2018, HPH stated future global trade prospects face increasing uncertainty.

This uncertainty is “particularly in consequence of escalating trade tensions and disputes between the United States and both China and the European Union and uncertainty over economic and interest policies that fuel global market volatilities,” said HPH Trust, echoing its sentiments from its report for its second quarter and half year ended 30 June 2018.

Deployment of mega vessels intended to promote fleet and capacity optimisation to drive cost efficiencies will continue and greater focus will be placed on security in light of recent cyber-attacks and their continued threat, it predicted.

However, the effects of consolidation of ownership within the shipping industry should start to stabilise.

HPH Trust aims to continue to meet the needs of “the container shipping industry through its exemplary mega vessel handling capabilities at YICT, its ongoing investment in modernising its equipment and facilities and its possession of a strategic transshipment hub in Hong Kong.”

In light of trade tensions though it has “adopted a more conservative outlook regarding expected cargo volume for the fourth quarter of 2018 and prospectively for 2019.”

According to The Business Times, the manager of Hutchison Port Holdings Trust has rejected an offer from Hutchison Port Holdings (HPH), the operator of the trust’s port assets, to acquire a 70% stake in Shantou International Container Terminals (SICT).