| Shipping Monitor [ PDF ] | |
| AE rates not at the bottom? | |
| NEUTRAL - Maintained | |
| - by Raymond YAP, CFA | |
| Asia-Europe container rates continue to slide due to weak demand and excess capacity deployed, while transpacific rates are holding up. VLCC and capesize rates inched higher last week, but rates are still unable to cover cash operating expenses. We remain Neutral on the sector as valuations have corrected to reflect tough market conditions. OOIL and SITC are Outperforms because of their relatively strong financial performances. We recently upgraded Pacific Basin to Trading Buy as the company is disposing its loss-making RoRo business. We also like quality names like MISC for the long term. RDD |
12 September 2012
Shipping Monitor [ PDF ] AE rates not at the bottom?::CIMB
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