Syscorp Focuses on Domestic Routes
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.
Hubline Exits Container Shipping Business
The company cited overcapacity in the market and difficult economic operating conditions as the main drivers behind the decision. While, shipping remains the main activity of the group, the focus would shift towards break bulk shipping, as it a viable and sustainable division with good prospects of further growth. “The global liner industry is struggling with the depressed freight rates to meet operating costs,” the firm said in a filing to the Kuala Lumpar Stock exchange. “The container liner industry has long been suffering since the economic crisis and overcapacity in the market is still evident. The exit process would involve withdrawal from various trade routes, termination of related service and operational contracts, as well as the disposal of container shipping related assets.
