Freight and logistics players’ earnings may rebound in 2H22e, but recovery for passenger transport players could be delayed. Shanghai’s A-share transportation and logistics sector has declined 2% since late March vs CSI 300, up 1%. While Shanghai is returning to normal with the lockdown easing from 1 June, it still faces limitations on transportation and logistics for travel outside of Shanghai. Its rail and air passenger traffic and freight volumes should recover to levels pre-the COVID-19 wave around mid-March, resulting in y-o-y growth. We reckon earnings of Shanghai’s freight transport and logistics players could rebound in 2H22e, while Shanghai-based airlines and airports could remain under pressure due to continued losses. But we are still optimistic about their turnaround in 2023e. Currently, the major listed companies operating in Shanghai’s transportation and logistics sector are trading at historical lows. The gradual relaxation of international travel restrictions and strong traffic rebound could be positive share price catalysts.