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The chemical shipping market experienced its best performance over the past
20 years for national carrier, MISC Bhd.
Freight rates reached historical high in the second half of 2004 exceeding
previous peaks of 1991 and 1995.
The firmer freight rates are the result of demand outstripping supply for
the more sophisticated chemical vessels and the lack of yard space to build
stainless steel chemical vessels.
The demand for chemical vessels also edged up higher as countries such as
India and Pakistan restrict vessels which are more than 25 years from
entering their ports.
Taking the advantage of the market situation the national carrier has placed
orders for additional four chemical tankers.
The double-hull tanker will raise MISC Bhd chemical tanker fleet to 17 ships
from current fleet of 13 ships.
The four chemical tanker newbuildings of 38,000 DWT each built at STX
Shipbuilding Co Ltd of South Korea will be delivered in 2009.
The delivery of four carriers will raise total fleet of MISC Bhd to 128
ships with combined tonnage of 11.23 million dwt by 2009.
The RM675 million chemical tanker orders from Korean yard will complement
the national carriers other chemical tanker operation of seven Melati class
ships chemical tankers, 4 Anggerik Class ships and two Semarak class ships
in service.
MISC chemical shipping business managed to benefit from the strong market as
a result of several ongoing operational improvement initiatives, including
improved vessel rescheduling to reduce transhipment and voyage turnaround
time.
MISC Bhd has negotiated and renewed higher rate for nine COAs during the
last financial period.
In fact, in tandem with its strategic direction to better serve and
capitalise on targeted niche markets, three new stainless steel vessels were
in-chartered on a long-term bareboat charter.
The first vessel, Bunga Kantan Satu, was delivered on 15 March 2005 while
the other 2 sister vessels joined the chemical fleet in June and September
2005 respectively. Long-term time charters had been concluded for all the 3
Bunga Kantan vessels.
MISC Bhd is confident that the chemical shipping market will remain firm due
to the favorable supply demand imbalance and tight shipbuilding market. |
