Shipping: CS has issued a bullish report on the sector specific to Asia Pac. They note that long-haul trades report healthy growth in 1Q11 and high load factors, limited idle fleet and rebounding charter rates do not suggest excess capacity on supply side…
The China outbound freight rate index is now 9% from bottom in mid-March and both container trade demand and load factors have recovered. House expects carrier earnings to trough in 1H11 and recover in 2H11 but is of view trough is priced in but not recovery. NOL is cited as a preferred stock due to its high US contractual exposure and will benefit from growth in Trans-Pac backhaul (return) routes.
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