The shipping market is so tough even well-established mainly domestic and intra-Asia focused lines such as Miri, Sarawak-based Shin Yang Shipping Corp are warning that rates will continue to be under pressure.

Local reports cited group cfo Richard Ling as saying that the usual suspects of overcapacity and weak demand will have a continued impact on charter rates.

“The demand is not strong enough and everybody (shipping firms) is fighting for the cargo,” Ling said, commenting on the market outlook for the shipping industry.

Although Shin Yang is a market leader in the domestic Malaysian container market, Ling said business was still tough going as freight rates had remained stagnant as stiff competition for cargo has continued to put pressure on the rates.

Shin Yang has even laid off three container vessels after ceasing unprofitable regional operations more than a year ago. It now focuses on domestic routes with its fleet of 14 container vessels plying Sarawak, Sabah and Peninsular Malaysia ports and coastal towns.

For the financial year ended 30 June 2015, the group transported 108,218 teu, 13% more than 95,456 teu in financial year 2014.

For the bulk side, while Shin Yang's bulk carriers transport mainly timber products to the Far East region, and it is not involved in major bulks such iron ore or coal, even this niche trade was down 20% last year from 2014, with just some 580,000 cu m of timber products shipped.