KUALA LUMPUR: Northport (Malaysia) Bhd, Shin Yang Shipping Sdn Bhd and Harbour-Link Group Berhad have signed a memorandum of understanding (MoU) to firm a strategic alliance called The East Malaysia Network or TEAM Network. MMC Corporation Bhd said in a statement the MoU was aimed at achieving economies of scale through the sharing of resources such as vessels, terminals arrangements and networks. “It is also expected to increase shipping service frequency through a scheduled alignment between Shin Yang and Harbour-Link. “With the consolidation of vessel capacity between the two lines, the pact will create greater economies of scale with the optimised deployment of vessels and a wider port coverage.  "It will also result in a reduction of operating expenses as well as optimisation of capital expenditures for both shipping lines,” it added. Northport chief executive officer Datuk Azman Shah Mohd Yusof said the strength of Northport...

KUCHING: Shin Yang Shipping Corp Bhd (Syscorp) said overcapacity in the industry and weak demand will continue to pressure charter rates.“The demand is not strong enough and everybody (shipping firms) is fighting for the cargo,” group financial controller Richard Ling told StarBiz when asked on the market outlook for the shipping industry.It was reported that the Baltic Dry Index (BDI), which measures charter rates across dry bulk ship sizes and routes, recovered from its low of 290 points on Feb 2 to hit 429 points on March 31. The index further recovered to more than 500 points late last week but was still below 2015’s average of 718.Syscorp, which operates a fleet of nearly 290 vessels, including those deployed in Middle East operations, transports mainly timber products to the Far East region. Last year, the group shipped some 580,000 cu m of timber products, which was down by 20% from 2014.  The group does not ship other dry bulk...

KUCHING: Shin Yang Shipping Corp Bhd (Syscorp) has shifted the focus of its container shipping business to domestic routes as the industry is shrouded with continued uncertainty.Group financial controller Richard Ling said Syscorp currently operated a fleet of 14 container vessels with about 95% of them deployed on routes within Malaysia.“A majority of these container ships ply Sarawak, Sabah and Peninsular Malaysia ports,” he told StarBiz. The group laid off three container vessels after ceasing the unprofitable regional operations more than a year ago.For the financial year ended June 30, 2015 (FY15), Syscorp recorded a sharp increase in earnings from domestic and coastal shipping activities as the segment’s profit jumped to RM31.9mil from RM13.1mil in FY14. The group’s container vessels transported 108,218 TEUs (twenty-foot equivalent units) against 95,456 TEUs in FY14 or up by 13%. Its 13 twin decker cargo vessels shipped some 580,000 cu m of...

Leading Malaysian domestic shipping company Shin Yang Shipping Corp (Syscorp) has tuned inwards in the face of continued volatility in the international container shipping market, local reports said.Syscorp 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 said, adding that the group laid up three container vessels after ceasing the unprofitable regional operations more than a year ago.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. Two of the project’s work...

KUCHING: Shin Yang Shipping Corporation Bhd (Shin Yang) foresees domestic and coastal shipping as a driving growth in anticipation of the coming Pan-Borneo Highway projects as a further boost from the recent Budget 2016.According to chairman Tan Sri Datuk Ling Chiong Ho in Shin Yang’s 2015 annual report, it was a year full of anxieties and economic uncertainties, especially with the crude oil price having plunged by more than half due to the global crude oil supply issue.Ling noted that this was further deepened with the economic uncertainties in the US and European countries and political tensions arising in the Middle East regions.He further noted that the international shipping market is facing a severe situation in dry bulk shipping due to plunging rates for carrying commodity products.“Furthermore, shipbuilding the oil and gas sector was at its lower path due to downsizing or minimization of their capital expenditures toward the oil and gas industry...

KUCHING: Shin Yang Shipping Corp Bhd, which owns and operates a fleet of 297 vessels serving domestic and international routes, will see a boost to its bottom line if the current low bunker fuel price stays.Group financial controller Richard Ling said Shin Yang had benefitted from the drastic drop in bunker fuel price as marine fuel oil consumed by the group’s larger cargo vessels and chemical tankers had plunged to US$450 per tonne from US$600 per tonne early this year.He said industrial diesel used by the group’s smaller cargo vessels plying mostly domestic routes had also come down following the drop in global crude oil prices.“Bunker fuel made up between 30% and 35% of our operational costs, and the group’s annual fuel consumption bill is around RM130mil. The lower bunker fuel will significantly reduce our operational expenses.  “Based on the current bunker fuel cost, it will increase the group’s profit margin by 7% to 8%...