MISC to quit Asia-Europe trades
MALAYSIAN INTERNATIONAL SHIPPING CORPORATION (MISC) seems to have caught its partners by surprise last Friday 15th May 2009, with its decision to quit the Asia-Europe trades and resign from the Grand Alliance.
In a stock exchange filing, MISC said it would leave the Grand Alliance at the start of 2010 and focus on regional routes.
MISC a junior partner in the consortium, does not operate on all routes with the three other members, NYK, Hapag-Lloyd and OOCL.
“The present global economic downturn has severely impacted the global liner industry with many leading operators having to react radically to manage the downturn,” An MISC spokesperson was reported in the shipping press to have said.
“The withdrawal of MISC’s liner division from the Asia-Europe trade is part of a portfolio restructuring to reposition the business on a firmer footing that will drive future expansion.
As a result of this portfolio restructuring, MISC’s liner division’s future focus will be to become one of the leading intra-Asia liner operator, with the Middle-East/India Subcontinent to Asia trade being one of its core trade services.”
MISC joined the Grand Alliance in 1998.
However at this time, shipping lines are currently obtaining some minor rate increases in the Asia-Europe trades as conditions stabilise, and have further restoration efforts planned for later in the year. One wonders if MISC has made the correct decision?
One thing is agreed upon by many mariners, if not for the LNG vessels with long term charters, MISC would be finished as an international shipping company.
The Grand Alliance fleet comprises about 140 vessels with capacities of between 2.900 and 9.000 teu. MISC has thus far contributed seven vessels and contributes two 7,900 teu container ships to the alliance’s EU2 rotation.
Respice, adspice, prospice
Examine the past, examine the present, examine the future