KUALA LUMPUR: Elevated tanker and freight rates globally are reinforcing profitability across the shipping sector, turning vessel capacity into strong earnings generators amid continued supply constraints, industry players said.

Orkim Bhd executive director and chief executive officer Captain Cheah Sin Bi said the current rate environment is supporting earnings strength across tanker operations, while disciplined chartering structures remain key to managing volatility.

He said the company mitigates market swings through a diversified chartering strategy spanning time charters, consecutive voyage charters, contracts of affreightment (COA) and spot voyages. This structure provides both earnings visibility and the flexibility to capture upside during market upturns.

Cheah said the mixed portfolio of charter contracts shields Orkim from extreme market volatility while allowing the company to benefit from stronger pricing conditions.

While cost pressures, particularly fuel and insurance, remain elevated, he noted that contractual safeguards such as bunker adjustment clauses enable the company to pass through fluctuations in global oil prices…..