Freight rate hikes spur shipping company profits

According to executive chairman Datuk Yong Piaw Soon, the global industry enjoyed a boom in 1Q21, with container freight rate indexes topping US$5,000 (RM21,955) per 40-foot container in February 2021, after climbing steeply and steadily from May 2020.

KUCHING: The strong recovery in freight rates for container and dry bulk shipping from years of been in the doldrums has given a big boost to the bottom lines of Sarawak-based shipping companies. Harbour-Link Group Bhd and Shin Yang Shipping Corp Bhd (Syscorp), key beneficiaries of the current robust ocean freight rates, have reported better utilisation of their shipping spaces and increased cargo volume.

Hubline Bhd, which ceased containerised shipping in 2015 after incurring massive losses due to overcapacity and depressed freight rates, similarly posted stronger earnings from its dry bulk shipping business.