Highly cyclical nature of the container shipping industry Relatively high leverage Its relatively limited operating scale and weak presence on long-haul routes Strong market position in intra-Asia container routes Good operational flexibility The rating on Wan Hai Lines Ltd. reflects the highly cyclical nature of the container shipping industry, the company's relatively high leverage, as well as its somewhat limited operating scale and weak presence on long-haul routes. Counterbalancing factors include the company's strong market position in intra-Asia container routes and its high operational flexibility. Wan Hai is not immune from the high cyclicality of the global container shipping industry. The deepest ever industry downturn in the company's history plunged its operations into losses in the fourth quarter of 2008
