Shipping Market to Enter New Competitive Cycle from 2027 with Surge of New Vessel Deliveries

Freight forwarding company Sinotrans CTS (5609-TW) has recently indicated that the shipping market remains relatively balanced in terms of supply and demand this year. However, a large number of new vessels are scheduled for delivery between 2027 and 2028, which could gradually push the global shipping market into a new competitive cycle. The market outlook is highly volatile, and visibility for the fourth quarter of this year remains limited.

Sinotrans CTS notes that market conditions are changing rapidly. Fortunately, Taiwan continues to play a critical role in the global AI supply chain, supporting strong air freight demand that is expected to remain robust into next year.

With an average on-time delivery rate exceeding 98% for time-sensitive cargo, Sinotrans CTS currently derives up to half of its revenue from semiconductor and high-tech logistics, serving over 350 semiconductor industry clients.

The company believes AI is becoming a key driver of the next wave of global logistics growth. It has already established a one-stop supply chain service connecting Asian manufacturing bases to global AI data centers, integrating air freight, ocean freight, bonded warehousing, project logistics, trade compliance, and supply chain integration.

Sinotrans CTS further explains that global cargo flows are being reconfigured. China’s export focus is gradually shifting toward ASEAN, India, and other emerging markets, while high-value cargo exports from Taiwan and Southeast Asia to the United States continue to grow. The global supply chain is not simply undergoing 'de-Chinaization' but is evolving toward a more diversified and regionalized structure.

Meanwhile, geopolitical risks have become the new normal for supply chains. Shippers are shifting their supply chain management strategies from a sole focus on lowest cost to a balanced approach that emphasizes resilience, risk mitigation, and rapid response capabilities.