Shares of Neptune Orient Lines (NOL) rose as much as 4.1 percent on Wednesday 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.
At 0129 GMT, NOL shares were up 3.6 percent at S$1.15, outperforming the broader Straits Times Index which was 1.6 percent 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," said a local analyst.
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 on Tuesday.
At 0129 GMT, NOL shares were up 3.6 percent at S$1.15, outperforming the broader Straits Times Index which was 1.6 percent 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," said a local analyst.
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 on Tuesday.