CHINA Merchants Energy Shipping reported lower first-half results but maintained a bullish view on tankers and a firmer medium-term outlook for dry bulk.

The tanker market performance in the first half of 2025 fell short of expectations despite stable seaborne crude trade, CMES said in a stock exchange filing. A total of 16 new vessels were delivered, while seven older ships were scrapped, leaving the orderbook at just 12% of the world’s total fleet capacity. With just five very large crude carriers to be delivered this year, fleet ageing is expected to continue.

Meanwhile, low global oil inventories and Opec+’s measured production increases are likely to drive demand on Middle East-Asia and Atlantic-Asia routes, while continued US sanctions on Iranian crude are supporting the market for compliant VLCCs, according to Guosheng Securities analyst Yang Zhenhua.

In dry bulk, markets were volatile, with the Baltic Dry Index averaging 1,290 points. Demand was expected to firm in the second half of the year, led by seasonal iron ore and grain imports and rising bauxite exports from Guinea, CMES projected in its fiscal report.

Strong global dry bulk demand is pushing freight rates higher, supported by rising Brazilian iron ore shipments, China’s increased soyabean and corn imports from South America, and Guinea’s bauxite exports, while new vessel deliveries remain limited amid economic uncertainty and widespread port congestion, according to Southwest Securities analyst Yang Rui.

In the first half of 2025, the company recorded revenue of Yuan12.6bn, a 4.9% decline compared with the same period last year, while net profit attributable to shareholders fell 14.9% to Yuan2.1bn. Tankers remained the company’s largest revenue contributor, accounting for 35.3%, followed by dry bulk at 29.4% and container shipping at 24%.

CMES cautioned that macroeconomic and geopolitical uncertainties, including potential US Trade Representative’s 301 measures targeting Chinese carriers and shipbuilders, continue to weigh on the shipping sector.

At the close of the reporting period, the company operated 52 VLCCs and controlled 37 very large oil carriers, maintaining its position as the world’s largest equity VLCC and VLOC fleet.