Shin Yang Shipping Corp Bhd (Syscorp) has shifted the focus of its container shipping business to domestic routes in the face of continued volatility in the international container shipping market, reports the Star.
The leading Malaysian shipping company has realigned its focus to domestic container shipping routes with some 95% of its 14 container ships deployed on routes within Malaysia, group financial controller Richard Ling said.
“A majority of these container ships ply Sarawak, Sabah and Peninsular Malaysia ports,” he told StarBiz.
However, domestic container shipping operation remains “very competitive” with reduced demand, Ling said, and this has squeezed the profit margins of shippers.
Syscorp sees some future cargo potential from the sea transportation of road construction materials for the Pan Borneo Highway project in the next few years.
The group laid off three container vessels after ceasing the unprofitable regional operations more than a year ago.
Miri-based Syscorp, which operates a fleet of nearly 290 vessels, including those deployed in Middle-East operations, is also involved in the shipment of crude palm oil (CPO) from Malaysia and Indonesia to China.
Syscorp and some other shipping firms have reportedly benefitted from the recent withdrawal of container shipping by Hubline Bhd. As a key player in domestic and intra-Asean routes, Hubline ceased container shipping operations all together in September, last year to stop the heavy losses it had incurred in recent years due to overcapacity and depressed freight rate due to stiff competition for cargo.