[060113.EN.SEA] MOL To Make Hong Kong Boxship Base, Singapore For Tankers, Bulkers

JAPANESE shipping giant Mitsui OSK Lines (MOL) plans to use Hong Kong as the base of its containership business and Singapore as the hub for its tankers and bulkers while focussing on customer-centric sales activities.

In his New Year's address, MOL president Koichi Muto also said the MOL, Japan biggest shipping company, is facing another year of loss following 2012's largest loss in history of JPY27 billion (US$320 million), said its president.

The biggest problems facing the carrier have been free tonnages without committed contracts against a steep decline of dry and liquid bulk freight rates. It was able to stabilise rates in 2012 by rationalising its fleet size, reducing services and avoiding excessive pursuit of high space utilisation.

Mr Muto said he expects a firmer seaborne trade volume from emerging market countries in the second half of 2013 with freight rate recovery helping to right the supply-demand gap for vessels.

MOL aims to reduce its market exposure of free tonnages to weather market downturns by winning as much cargo as possible by leveraging MOL's reputation for trustworthiness and technological capabilities. It will scrap, sell and redeliver vessels as well as delay newbuilding deliveries.

MOL will continue to pursue environmental safety by the "4 zeroes" for preventing serious marine incidents, oil pollution, fatal accidents, and cargo damage by making improvements in both our hardware, such as vessels and equipment, and our intangible assets, such as seafarers' skills, ship management and our safety culture.

Source : HKSG.