NOL joins Asia-Europe trade to cut short-term costs

The container shipping operator's entry to the Asia-Europe trade will help trim costs over the next three years.

In a new shipping monitor update, CIMB said that "Neptune Orient Lines has finally joined the league of 10,000+ teu ship operators on the AE trade that will help it lower unit costs over the next three years."

"Its heavy exposure to the US trade will help it benefit from strong TP volumes," CIMB added, referring to the now-more lucrative transpacific business.

"Carriers are having much more success in the transpacific trade, with SCFI rates to the US rising US$57-81/feu. Over two weeks, two-thirds of the proposed US$600/feu PSS hike on 10 June have been passed through. US shippers remain confident on the upcoming peak season," said CIMB.

It warned though that "the trends in container rates on the AE and TP trades may diverge in 2H12."