Asian investors reacted positively Thursday to the news that the G6 Alliance will not reinstate one of its seven Asia-Europe container services.
In the face of downbeat economic data overnight, Neptune Orient Lines, parent of G6 Alliance member APL, was one of the best performers on the Singapore Stock Exchange. The container line usually suffers in times of heightened worries over the global economy.
The G6 Alliance, which was formed in December by the carriers that belong to the Grand Alliance and the New World Alliance, said Wednesday that they would not launch Loop 2 of the services they are starting this spring between Asia and North Europe.
Singapore market analysts said the news boosted hopes that container lines will exercise more discipline in deploying vessel capacity on the trade lane and help support the general rate increases they have implemented since the beginning of the year.