SINGAPORE (June 8): The outlook for both demand and rates for container shipping remains muted this year, even as Neptune Orient Lines focuses on improving profitability in its liner business, Citigroup says in a note. Citi notes that the industry wide capacity growth of 8.6% this year will likely outpace demand growth of around 4.8%. US consumer demand has generally lagged our expectations and macro [and] export indications from Asia are less than inspiring, Citi says. It says Neptune Orient' s management is seeing " modest rate support" along the transpacific trade. However, the large vessel deliveries along the Asia-Europe trade will continue to weigh on those already weak rates, Citi says. Neptune Orient is down 1.6% at $0.935, while the Straits Times Index is down 0.3%.

Source : http://www.theedgemarkets.com/sg/article/muted-container-cargo-outlook-weigh-nol

KUALA LUMPUR (June 8): CIMB Research had downgraded the regional container shipping sector from Neutral to Underweight on the back of a wasted bunker windfall. Fear is now the dominant emotion as carriers give away the benefits of lower bunker prices by way of aggressive capacity injections and rate competition, the report said. Core earnings per share (EPS) forecasts were reduced for all companies on the back of the weaker-than-expected freight rates, and target prices were also reduced. CIMB also reduced their rating on SITC International Holding Company shares from Add to Hold, and on Orient Overseas International (OOIL) shares from Add to Reduce. Neptune Orient Lines (NOL) remains a Hold, while China Shipping Container Lines (CSCL) is our top Reduce, the research house said.

Source : http://www.theedgemarkets.com/my/article/cimb-research-cuts-container-shipping-sector-underweight