Orient Overseas International Ltd. warned of trade uncertainties ahead as geopolitical tensions with the U.S. intensify, coming off a year in which the container carrier posted better-than-expected earnings. 

“The reshaping of the global supply chain will undoubtedly affect the container shipping market in the long term,” the company said in an exchange filing. It said the U.S. administration’s new policies will be “impacting the global economy and supply chain in the short and long run.”

Signs of the Red Sea situation stabilizing and the potential resumption of passage through the Suez Canal will release capacity and lead to freight rates normalizing, the company said.

Net income grew 88% to $2.58 billion in 2024 amid strong import demand and high freight rates, beating the $2.47 billion average analyst estimate. Revenue for the Cosco Shipping Holdings Co. subsidiary grew 28% to $10.7 billion.

Rising protectionism, uncertain consumer demand trends and softer freight rates may spell challenges for the container shipping sector, said Bloomberg Intelligence analysts Stephane Kovatchev and Kenneth Loh. Freight rates are down almost 60% from their July peak, largely driven by the U.S. tariffs imposed on imports from key trade partners such as China and the European Union.