The ratings on Wan Hai reflect the company's leading market position in intraAsia shipping routes, low cost position, and moderate financial profile. However, these strengths are offset by the cyclical nature of the container shipping industry and intense competition, which regularly results in downward pressure on freight rates. Wan Hai is the largest container shipping company in the fast-growing intraAsia market. The company operated a fleet of 55 container vessels with an aggregate capacity of 69,271 twenty-foot-equivalent units in 24 trade lanes as at the end of 2002. Revenue from intraAsia trade accounted for about 76% of net operating revenue in 2002, with the balance coming from transpacific and Middle East trade. Wan Hai benefits from regional economies of scale
