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Demand defies rate hikes

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SCMP Reporter

WITH the exception of Shanghai Haixing, Hong Kong-listed shipping companies have done well this year, riding the crest of a wave of rising freight rates.

But the outlook has been clouded for the next year because freight rates have slumped, from near record highs to low levels not seen for a year, due to low demand and a glut of old ships.

Container carrier Orient Overseas International Ltd and bulk-carrier operators IMC Holdings, Wah Kwong Shipping Holdings and Noble Group reported increases in profits for last year and interim profits for this year.

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Wah Kwong recorded a hefty 41.4 per cent increase in net profit for the year ending March, to US$52.6 million from US$37.2 million a year ago.

Its operating profit rose 33.6 per cent, from US$40.15 million to US$53.66 million, on a turnover of US$133.56 million.

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The company operates a fleet of 22 vessels, ranging from handysize bulk carriers and product tankers, to Capesize vessels. Seven vessels are on order with Chinese and Japanese yards.

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