Shares of Neptune Orient Lines (NOL) rose as much as 4.1% this morning after six container shipping firms, including units of the Singapore company, agreed to create one of the largest vessel networks in the Far East-Europe trade lane, reported Reuters.
At 9:29 a.m., NOL shares were up 3.6% at $1.15, outperforming the broader Straits Times Index which was 1.6% higher.
“An alliance prevents the liners from price-cutting to get market share, so it’s positive. I think the trend in the industry will accelerate,” a local analyst told Reuters.
The partnership will create a container shipping alliance with more than 90 ships in nine services calling at more than 40 ports in Asia, Europe and the Mediterranean, NOL said in a statement yesterday.
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