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How is MISC faring in light of the overall bearish view on the shipping industry?
AILING shipping rates amidst a glut of vessels in the market are weighing down on MISC Bhd's outlook over the short and medium haul.
Shipping rates - be they dry bulk, dirty or clean tankers - continue to be pressured, with an oversupply of vessels plaguing the market, say analysts. The situation is likely to persist over the immediate to medium term, in line with many analysts' bearish view on the overall shipping industry.
'The global shipping industry is facing tough times as it braces for mounting negative factors including high oil prices, unrest in the Middle East and Africa and oversupply of vessels,' says an analyst.
Indeed, the oil price surge has added further pressure on shipping companies, particularly liners and vessels leased out on a spot charter basis, as they face weak operating margins owing to the supply-demand imbalance seen in most parts of the shipping industry.
MIDF Research says …