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MISC Bhd’s chemical and
container shipping rates are also facing a
gloomy outlook as rates weaken due to slower
demand and greater supply.
According to a local bank-backed research house,
this would impact MISC, which has 13 chemical
tankers.
An analyst with the research house said the
slowdown in global crude oil demand would reduce
refinery runs and petrochemical output, directly
affecting cargo availability for the chemical
tanker trades.
Meanwhile, the weaker consumer demand for
vegetable oils and excess vessel supply from
high newbuilding deliveries will also have a
negative impact on rates, the analyst said.
“As a result, we expect MISC’s chemical tanker
earnings to remain weak this year and next year.
“However, the division should not go into losses
because two-thirds of the capacity is tied-up
contract of affreightment (COA) that is
naturally on a long-term basis and falling
bunker prices will reduce voyage costs,” said
the report.
Its container shipping division is also facing a
bleak outlook as freight rates continue to fall,
especially in the Asia- Europe trade route, due
to lower demand as a result of the global
economic crisis.
“As a member of the Grand Alliance, MISC deploys
most of its capacity on routes between Asia and
Europe, which have seen per box year-on-year
rates fall by 75% to 80%,” the research house
pointed out. |
