Shipping (container) / NOL

Shipping (container) / NOL: AP Moeller-Maersk, the world’s largest container line, rose to the highest price in 7 weeks in Copenhagen trading after Berenberg Bank said in its initiation Buy report, that higher freight rates may drive the share up 47%. Maersk shares rose 880 kroner, or 2.3%, to 39,700 kroner, making it yday’s biggest gainer in the OMXC20 benchmark index. The Shanghai Containerized Freight Index (SCFI) has climbed about 50% since Feb after shipping lines slowed speeds and pooled vessels to counter oversupply in the market. But Berenberg believes the rate increases aren’t yet reflected in the share price. Sees both the industry and Maersk are heading for a period of lower volatility and higher sustained profits. Separately, Hyundai Heavy Industries Co., the world’s biggest shipbuilder, said it won an order to build 10 mega-container vessels for US$1.2b, the biggest new contract for the type industrywide in a year. The vessels, each able to hold 13,800 20-foot boxes, will be operated by South Korea-based Evergreen which will lease the vessels from Enesel. Deliveries are due to start in 2H13. Evergreen’s commitment to the new mega-container ships suggests the long term outlook for the industry remains viable. NOL is +0.4% at $1.14.