Cosco Shipping Holdings (CSH) and Orient Overseas International Ltd (OOIL) still offer investors the potential for good returns despite the recent weakness in freight rates, says a top analyst.
UOB Kay Hian analyst Roy Chen says the Shanghai Containerized Freight Index and China Containerized Freight Index have peaked in recent weeks.
“Though the August 2024 freight rate futures contracts have held firm, far-end futures contract prices pulled back significantly in the past month amid the ongoing Gaza truce talks, with prices of Shanghai-Europe freight futures contracts expiring between October 2024 and June 2025 retreating between 22% to 49% from the 5 July 2024 levels,” he...
