Box Consolidation Begins As MISC Plans Exit To Concentrate On Liquid Bulk Market

BMI's view of the increasing likelihood of consolidation in the box shipping sector is starting to play out, with so far one carrier exiting and mergers becoming increasingly likely, if operators are to survive the deepening decline in the sector. Malaysian shipping company MISC Berhad (MISC) has announced it plans to cease its box shipping operations at the end of June 2012, in order to avoid the gathering storm in the sector and concentrate on its considerable liquid bulk operations. While the exit of MISC is good news for its competitors, the company's exit is unlikely to do little to to aid the overcapacity issue in the sector, with the line's box vessels likely to be sold and chartered-in tonnage returned to its owners.

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