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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (5863)	5/7/2006 5:00:57 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

Shipping market seen softening May 8 2006 THE cyclical shipping market that started to stabilise in early 2006 after a steep increase that started in 2004 and continued for much of 2005, is expected to soften. The outlook for the freight market for specific sectors, including the container shipping sector has been showing signs of softening, said the executive chairman and managing director of Halim Mazmin Bhd (HMB), Tan Sri Halim Mohammad. “The trend is expected to continue until 2009, on account of the fact that owners are taking delivery of new buildings and this will increase the supply faster than the growth in demand,” said Halim. Echoing his views, German-based Hamburg Süd also warned of tougher times to come. Hamburg Süd notes: “In view of the positive growth forecasts for world trade, and especially the economic development in China, a further rise in cargo volume is expected for 2006. However, it is not anticipated that the increase in the capacity of about 16 per cent, resulting from the inflow of new buildings will be absorbed by worldwide cargo growth.” Halim noted that the Malaysian shipping industry generally went through a good year in view of the prevailing market conditions. Malaysia was ranked 18th largest maritime nation in the list of top 35 countries with a fleet of 327 vessels, totalling 9.8 million dwt, making up 1.17 per cent of the world total. The total size of the Malaysian fleet fell during the year under review as several ships were disposed off by shipowners who took advantage of the high prices of vessels in the market. Halim said HMB is studying the market closely and will consider any opportunities to acquire suitable tonnage, at the right time and right price and assuring stable returns. “The strong cash reserves that we have, provide us with sufficient confidence to consider expansion in the event we decide to enter the market,” he said. Total turnover of the company was lower at RM54.66 million for the financial year under review than RM127.09 million recorded the previous year. Nevertheless, the company continued to perform well as reflected in the higher profit before tax totalling RM78.85 million for the financial year ended 31 December 2005 compared with RM71.75 million recorded the previous year said the executive chairman of HMB in his 2005 annual report disclosed to Bursa Malaysia. Despite operating with fewer ships during the financial year under review, HMB managed to record an increase in its profit before taxation (PBT) totalling RM78.85 million compared with RM71.75 million posted the previous year. The increase in PBT recorded by the company during the year was notwithstanding the lower turnover of RM54.66 million it registered compared with RM127.09 million achieved in 2004. — PortsWorld btimes.com.my