MISC renews commitment to liner trade

NST Logistics 20 August 2007

In a clear indication that it is in for the long haul in the container liner trade, MISC Bhd has extended its participation in the Grand Alliance for further 10 years following a decade of association with the alliance members.
 
The Grand Alliance (GA), founded in 1998, is the leading integrated consortium in the global container liner shipping.
 
MISC’s participation in the alliance, comprising other members namely German-based Hapag-Lloyd, Nippon Yusen Kaisha and Hong Kong-based Orient Overseas Container Line will extend the space/vessel & revenue sharing arrangement to 2017.
 
MISC was represented by its Vice-President of Liner Business, Niels Kim Balling at the signing ceremony.
 
One of the key aspects for GA, which calls at Northport in Port Klang, future cooperation is to offer a higher frequency of sailings in fast growing markets to meet increasing the supply chain and shorter product-cycle requirements of its customers.
 
Depending on customer demands, Grand Alliance members will consider expanding the scope of the Grand Alliance.
 
Today, the Grand Alliance members collectively deploy a total of about 140 vessels each with a capacity of between 2,700 and 9,000 TEU offering 20 services, mainly on major east- west routes.
 
“We have enjoyed a very close partnership with GA members which has able to respond to market changes rapidly and together realise cost savings for customers. Our customers benefit from our modern tonnage, excellent port coverage and attractive transit times, said the Chairman of MISC, Tan Sri Datuk Sri Mohd Hassan bin Marican.
 
“There was thus no doubt about in our desire to continue our successful cooperation with GA. We are happy with them and we are not looking for other alliances,” he added.
 
As member of the Grand Alliance, MISC injected three 5,334 TEU ships to improve overall scale efficiency under a vessel swap arrangement for its two 7,943 TEU new buildings, the Bunga Seroja Satu and Dua which joined the long-haul trade lanes during the year.
 
However the Hassan said that, the liner business was expected to continue facing a difficult year in light of surplus tonnage in the market as well as softening of freight rates and escalating operating costs.
 
“We will continue to focus on improving its cost efficiencies and strengthening its yield management activities in the liner business,” he said.
 
Speaking at the 38th Annual General Meeting in Kuala Lumpur, he said MISC's strategy was to focus on long haul routes by strengthening its position in the East-West trade with a focus on the European markets.
 
He said MISC would strive to maintain a position in Grand Alliance where it is a core partner.
 
Hassan also said MISC would also continue to establish itself as a leading player in the Halal supply chain solution.
 
The new service, MISC Liner Halal Express was successfully launched and accepted favorably by the market with the aim to tap the growing demand for halal products in Middle East and Indian subcontinent.
 
We will continue to look into the option of expanding the service further on right time said Hassan.

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