MTT Shipping finds sweet spot in feeder niche in International Shipping News 29/04/2026 MTT Shipping and Logistics Bhd, set to debut on Bursa Malaysia’s Main Market on April 21, is in a sweet spot: the group operates in one of the most overlooked segments of global shipping, where demand shows no signs of letting up. Unlike global liner giants such as MSC, Maersk, CMA CGM and Cosco, the Malaysian carrier serves in the container feeder market. This niche covers short-haul or “last-leg” routes between smaller regional ports and major hubs like Singapore, Port Klang and Port of Tanjung Pelepas (PTP). The segment, typically involving vessels below 3,000 TEUs (20-foot equivalent units), has long suffered from underinvestment and an ageing global fleet. MTT Shipping operates 26 vessels with capacities ranging from 415 to 1,836 TEUs, primarily serving routes between Peninsular Malaysia and Sabah, Sarawak and Brunei. It holds a 46% share of Malaysia’s container liner cabotage volume, making it the country’s largest container shipping operator by fleet size, comprising both owned and chartered vessels. Its initial public offering (IPO) comes at a time of heightened geopolitical uncertainty, with disruptions in the Middle East pushing oil prices higher and altering global trade routes. MTT Shipping managing director Ooi Lean Hin remains unfazed. “The world is very short of vessels today, particularly in the feeder segment. Years of underinvestment have created a widening gap between ageing ships that need to exit the market and insufficient newbuild orders,” he tells The Edge in an interview. While demand in the US and Europe has softened under inflationary pressure and weakening industrial competitiveness, intra-Asia trade flows remain resilient. “These emerging markets need more smaller ships,” Ooi says. Long-term structural shifts are also reshaping the industry. Supply chain realignments, driven in part by tensions between the US and China, are expected to increase intra-Asia cargo volumes as manufacturing bases relocate. This shift, which typically takes 18 to 24 months to be reflected in shipping demand, is likely to boost the need for feeder services linking manufacturing bases to regional transhipment hubs along the Strait of Malacca, Ooi notes. At the same time, China’s efforts to diversify its export markets are accelerating cargo flows within Asia, reinforcing the role of smaller vessels. While larger ships dominate long-haul East-West routes, they are ill-suited for regional networks. “Feeder ships are essential to bridge that gap,” Ooi says. Supply constraints and environmental rules Environmental regulations are also reshaping industry supply. New emissions rules from the International Maritime Organization are forcing older, less efficient vessels into retirement. However, replacement capacity is not keeping pace. Global shipyards are operating close to full capacity, and orders for smaller vessels are lagging. Data from Liner Research Services indicate that ships below 4,000 TEUs account for just 14.6% of the global order book by capacity, far below the industry average of 35.9%, which is skewed towards larger vessels. As older ships are phased out, a shortage of vessels in the sub-4,000 TEU category is expected to emerge. The current order book represents only 37.8% of the fleet that will be 25 years or older by 2030. Ships are generally scrapped when they hit 25 years old as they become too expensive to maintain and fail new env