Neptune Orient Gains as U.S. Ship Rate Jumps: Singapore Mover
Neptune Orient Lines Ltd. (NOL), Southeast Asia’s biggest container shipping company, gained the most in almost a week after the spot rate for hauling cargo to the U.S. west coast jumped to the highest in two years.
Neptune Orient rose 2.9 percent to close at S$1.08 in Singapore. China Shipping Container Lines Co. (2866), the country’s second-biggest shipping company, jumped 11 percent to HK$1.93 in Hong Kong, the biggest gain since May 15.
Spot rate to move cargo to the U.S. west coast jumped $333 per 20-foot container last week to $2,658, the highest price since August 2010, according to the Shanghai Shipping Exchange. Container lines are filling about 95 percent of their space, according to Shinyoung Securities Co. in Seoul.
“Demand is looking better in the trans-Pacific trade than to Europe,” said Um Kyung A, an analyst at Shinyoung. “At this pace, shipping lines may have been successful in levying the peak season surcharge on the trans-Pacific route.”
Members of the Transpacific Stabilization Agreement, which include Neptune Orient’s APL Ltd., said last month that they plan to impose a peak season surcharge of $600 per 40-foot box starting June 10. That comes after they were seeking increase of $500 per container for their annual contracts around May.
Hanjin Shipping Co. (117930), South Korea’s biggest shipping line, climbed 5.8 percent to 13,700 won in Seoul, the most since May 22. Orient Overseas International Ltd. (316), the largest in Hong Kong, jumped 7.6 percent to HK$40.45, the biggest advance since Feb. 1.
To contact the reporter on this story: Kyunghee Park in Singapore at firstname.lastname@example.org
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