Credit Suisse keeps the Asia container shipping sector at Overweight, noting China outbound freight rate and utilisation on major trades rebounded last week after weeks of decline, with cargo volumes starting to recover ahead of the Lunar New Year holiday.

The house also notes leading indicators such as the US ISM and China PMI new export orders for December continued to expand on-month and it views as suggesting decent Asian exports in the next few months, while the latest US and European consumer sentiment and retail data also point toward an improving demand outlook.

“With carriers proactively cutting capacity and introducing rate hikes/peak season surcharges, we believe blended freight rates can continue to rebound in the next few weeks.” The house adds, despite the sector’s recent rally, it remains attractive at 1.1X average forward P/B.

The house says it likes sector plays OOIL (0316.HK), CSCL (2866.HK), Evergreen Marine (2603.TW), Wan Hai (2615.TW) and NOL (N03.SG).