Kuala Lumpur: CIMB Securities Sdn Bhd has maintained its 2025 growth forecast for container throughput at 2.5 per cent, driven by new services from shipping alliances and potential front-loading activities during a 90-day tariff pause.

According to BERNAMA News Agency, Westports Holdings Bhd has adjusted its 2025 forecast for container throughput volume to be flat year-on-year, matching 2024 levels. This revision is a decrease from the previous estimate of low single-digit growth under five per cent. The adjustment reflects concerns over rising global trade protectionism and the possibility of a broader economic slowdown. However, the company remains optimistic about intra-Asia trade growth and regional realignment, which could help mitigate these impacts.

CIMB Securities reported a significant increase in Westports’ Asia-Europe trade volume, which rose by 21 per cent year-on-year in the first quarter of 2025, ending March 31. This growth is attributed to new services from the Ocean Alliance. The Asia-America trade volume also saw a 16 per cent year-on-year increase in the same period, supported by front-loading activities and underlying demand growth. Conversely, intra-Asia trade volume experienced a decline of seven per cent year-on-year due to rising competition following shipping alliance realignments.

The firm has maintained its earnings forecast and ‘Hold’ rating on Westports’ stock, with the target price remaining at RM4.50. However, potential re-rating catalysts for the stock include upcoming government-approved port tariff hikes, a recovery in transshipment cargo volumes, and sustainable gateway volume growth. On the other hand, potential de-rating catalysts include delays in the new port tariff revision by the government, escalation of geopolitical risks in North Asia and the Middle East affecting trade routes, and higher fuel costs.