Sign up
Log in Sign up
Fri 21 Aug 2009, 09:46 GMT

MISC expects bunker price rise to hit costs


Malaysian shipping line says operating costs are set to rise on bunker price surge.

Malaysia International Shipping Corporation (MISC) Berhad, the leading international shipping line in Malaysia, is expecting operating costs to increase in the near future due to the recent surge in the price of marine fuel.

Speaking about bunker prices after the company's AGM on Wednesday, Chairman Tan Sri Mohd Hassan Marican said “It was US$700 a tonne in the middle of last year, (it then) eased to US$200 per tonne and now it is almost US$400 a tonne.”

In addition to rising bunker prices, the shipping industry has been affected by fluctuating freight rates due to the decrease in global trade. However, according to Hassan, MISC has been cushioned from the impact of volatile freight rates as around 70 percent of its business is under long-term contracts.

Yesterday, MISC released its financial results for the first quarter ended 30 June 2009. Excluding a loss on the disposal of ships, MISC Group recorded a profit before tax of RM282.0 million during the quarter ended 30th June 2009, which was 49.6 percent lower than the corresponding quarter's profit of RM559.4 million.

The reduction was mainly due to lower profit in Petroleum business and higher losses in Liner and Chemical businesses, the company said.

"The contraction of global trade is expected to pose challenges to the shipping industry as reflected by falling rates in petroleum and container shipping. However, the Group's earnings from long term charters in the LNG and Offshore businesses will cushion the Group from the downward pressure on rates as mentioned earlier," MISC said in a statement.

Earlier this week MISC Berhad entered into a joint venture agreement with Vitol Tank Terminals International B.V. to incorporate a joint venture company on an equal partnership basis.

The joint venture company, Asia Tank Terminal Limited, will hold a 100 percent equity interest in a 741,200 cbm oil terminal due to be built in Tanjung Bin, located in south-west Johor, Malaysia. The facility will be used to store fuel oil, middle distillates and light distillates.

Container ship   LNG   Vitol   Malaysia 
American Bureau of Shipping (ABS) logo. ABS introduces nuclear-ready notation for marine and offshore assets  

The classification society has released what it describes as an industry-first notation to support future nuclear conversion of vessels and offshore assets.
AiP handover ceremony for NEXTGEN Energy Hub (NGEH) design. ABS grants approval in principle for Seatrium’s NEXTGEN Energy Hub design  

The hub concept integrates ammonia bunkering, power generation and electric vessel charging in a single unit.
Jumbo Maritime crew aboard vessel. Jumbo orders two methanol-ready L-Class heavy lift vessels from Dajin Heavy Industry  

Dutch heavy lift specialist Jumbo signs newbuilding contract for two 25,000-dwt vessels.
China flag. Zhoushan completes first bonded bunker operation at Majishan port area  

The operation marks full fuel supply coverage across all general cargo terminals in Zhoushan's port system.
US dollar banknotes. Port of Long Beach launches $1m methanol bunkering challenge for oceangoing vessels  

A $1m prize aims to kick-start commercial methanol bunkering at one of North America's busiest ports.
Core Power, Athlos Energy, Deon Policy Institute and ABS logos. Greece floating nuclear study finds no fundamental barriers to implementation  

A PESTLE assessment of floating nuclear power plants in Greece identifies framework gaps, not feasibility barriers.
Northern Pathliner alongside Bergen LNG vessel. Molgas completes LNG cool-down and bunkering for Northern Pathliner at Northern Lights terminal in Norway  

Operation carried out at Øygarden facility, with K Line and Integr8 Fuels in the supply chain.
Rendering of a G2 Ocean OHGC vessel. G2 Ocean expands fleet with six future-fuel ready gantry crane vessels  

Open hatch specialist adds vessels and jet sail technology as part of a broad fleet renewal programme.
CMA CGM Adventure vessel at Port of Mombasa. LNG-powered CMA CGM Adventure makes first call at the Port of Mombasa  

Kenya Ports Authority receives its first large LNG-fuelled container vessel.
Liam Blackmore, Lloyd's Register. Maritime trio shapes IMO safety guidelines for ammonia as marine fuel  

Real-world operational experience feeds directly into new IMO ammonia fuel safety framework.




   Fuels & Propulsion

Ammonia B100 B24 B30 Bio-LNG/LBM Biofuel Biogas Biomethanol Dual-fuel E-fuel E-methane/e-NG Electric Ethanol FAME Green hydrogen Green/e-ammonia HVO Hydrogen LNG LPG Lubes Methanol MGO Nuclear UCOME ULSFO VLSFO Wind power



 Recommended