Neptune Orient Lines (N03.SG) off 0.5% at $1.97 at 10:58 a.m. as caution in broad market, underlying concerns over potentially softer freight rates weigh, says Dow Jones.

Shares in steady decline since NOL reported return to profitability in 2Q10 with US$99.7 million ($135.5 million) earnings, as investors unload on prior strength, mull prospect of slower global trade, lower freight rates given uncertain global economic prospects.

Concerns backed by NOL’s latest operating data showing volume shipped during 4-week period ended July 23 down 0.8% sequentially.

“We believe freight rates could be peaking and face downward pressure as shipping carriers are struggling to implement further peak season surcharges and containership supply is increasing, especially on Asia-Europe routes,” says Nomura, which has Neutral call with $2.30 target.

Shares expected to hold above August low of $1.92 set last week.