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Hanjin Shipping seen to raise rates in second quarter

Hanjin Shipping seen to raise rates in second quarter

Hanjin Shipping Co., the third-largest line on transpacific routes, climbed to the highest in more than six months in Seoul trading on speculation it will be able to raise rates for carrying cargo to the U.S.
South Korea's largest shipping line rose 5.3 percent to close at 50,000 won. The stock has gained 26 percent this year, compared with a 0.6 percent decline for the Kospi index.
Hanjin Shipping, Neptune Orient Lines Ltd. and other lines aim to raise rates for shipments to the U.S. because of surging fuel costs and optimism about rising demand in the world's largest economy. The companies and their customers are currently in the final stages of annual discussions about rates.
"There are expectations that shipping lines will be able to increase rates on transpacific trade," said Song Jae Hak, an analyst at Woori Investment & Securities Co. in Seoul. "That will help them report higher earnings." He rates Hanjin Shipping "buy."
Trade volume is expected to increase from the second quarter as measures to boost the U.S. economy take effect, Hanjin Shipping said in its first-quarter report on May 15.
Neptune Orient, Southeast Asia's largest container shipping line, said on May 14 that it moved 232,000 40-foot standard containers on transpacific routes in the first quarter, 16 percent more than a year earlier.


Updated : 2021-04-15 17:08 GMT+08:00