KUALA LUMPUR: Shares of national shipping company, MISC BHD [] resumed its decline in late afternoon on Monday, March 7 in line with the weak broader market and tough times ahead for the shipping section.
At 3.33pm, MISC was down 14 sen to RM7.93 with 372,800 shares done. This was the lowest since Feb 24 when it closed at RM7.45.
The FBM KLCI fell 8.0 points to 1,514.61. Turnover was 470.13 million shares valued at RM618.02 million. There were 148 gainers, 565 losers and 235 stocks unchanged.
Moody's Investors Service said on Monday the global shipping industry is facing tough times as they brace for mounting negative factors including high oil price, unrest in the Middle east and oversupply of vessels.
Oil prices are at their highest levels since August 2008 on fears that unrest in Libya will spill over into other large oil-producing nations in the region. Bunker fuel prices have risen over 25% since the start of the unrest in Africa and the Middle East.
'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,' the ratings agency said.
Moody's also cited shipping companies such as MISC (A3 stable) which had resorted to slow-steaming to reduce fuel usage, optimize voyage planning and routing, and deploy measures to monitor vessels' performance and fuel consumption. Slow steaming refers to slowing down vessels to save fuel, while maintaining shipping schedules by adding vessels to routes.
However, Moody's warned that such savings are limited, as the extension of transit time is restricted by the time sensitivity of shipments. The risk of engine damage increases at extremely low steaming levels if a ship is not designed for slow steaming.
At 3.33pm, MISC was down 14 sen to RM7.93 with 372,800 shares done. This was the lowest since Feb 24 when it closed at RM7.45.
The FBM KLCI fell 8.0 points to 1,514.61. Turnover was 470.13 million shares valued at RM618.02 million. There were 148 gainers, 565 losers and 235 stocks unchanged.
Moody's Investors Service said on Monday the global shipping industry is facing tough times as they brace for mounting negative factors including high oil price, unrest in the Middle east and oversupply of vessels.
Oil prices are at their highest levels since August 2008 on fears that unrest in Libya will spill over into other large oil-producing nations in the region. Bunker fuel prices have risen over 25% since the start of the unrest in Africa and the Middle East.
'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,' the ratings agency said.
Moody's also cited shipping companies such as MISC (A3 stable) which had resorted to slow-steaming to reduce fuel usage, optimize voyage planning and routing, and deploy measures to monitor vessels' performance and fuel consumption. Slow steaming refers to slowing down vessels to save fuel, while maintaining shipping schedules by adding vessels to routes.
However, Moody's warned that such savings are limited, as the extension of transit time is restricted by the time sensitivity of shipments. The risk of engine damage increases at extremely low steaming levels if a ship is not designed for slow steaming.
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