US, China Agree 90-Day Tariff Truce Boosts Global Shipping Shares

Shares of transportation and shipping companies surged following a 90-day tariff truce between the U.S. and China, which involved the U.S. reducing tariffs on most Chinese goods to 30% from 145%, and China cutting its levies on U.S. products to 10% from 125%. This truce boosted broader U.S. stock indexes by 2% to 4%, with notable gains in shipping companies such as Israeli container liner ZIM, whose shares jumped over 13% to 14%, and global players like A.P. Moller-Maersk and Hapag-Lloyd, which rose 12%. U.S. shipping and logistics firms like United Parcel Service, FedEx, and CH Robinson Worldwide also saw share increases between 4% and nearly 6%, while oil tanker companies experienced moderate gains. Despite the positive market reaction, Wall Street analysts hold a cautious outlook on ZIM, assigning it an 'Underperform' rating with average price targets suggesting limited upside and potential downside based on valuation metrics. Overall, the tariff reduction truce has sparked optimism in the shipping sector, reflecting hopes for improved international trade conditions amid ongoing trade tensions.