NOL

NOL: +3.0% at $1.205. Analyst note that container shippers are rising regionally. In a report, Deutsche notes the Shanghai Shipping Exchange's SCFI index fell 0.5% on-week last week, but the decline was on Shanghai-to-Europe routes, while Shanghai-to-US routes posted rate rises on-week. Amid soft Asia-Europe vol, carriers are cancelling certain voyages, resulting in higher loading rates. The solid vessel utilization should help to prevent rates sliding in any large scale going forward. Add that strong Transpacific routes, with firm loading rates, helped carriers push through a peak-season surcharge this month, with another general-rate-increase planned for September. It estimates average 3Q rates will be more than 10% higher than 2Q's, suggesting liners' strong earnings recovery will continue; it estimates a 1% rate increase can boost liners' 2012 earnings an average 72%. It remains positive on the sector, expecting a better 3Q to be a positive catalyst. HOuse rates NOL Buy with $1.55 TP. Last week's $1.22 peak may offer a cap.