Jinhui Shipping and Transportation recorded a substantial second-quarter loss as dry bulk shipping’s supramax sector lost much of the momentum it had a year ago.
The Oslo- and Hong Kong-listed owner of 24 supramaxes and one ultramax posted $6.51m in net loss for the quarter, down from $20.3m in profit for the same period in 2022.
Revenue dropped to $22.8m collected during this year’s second quarter from $50.6m taken in during the year-ago period.
Jinhui attributed the much lower results to a much weaker bulker market during which the company’s time charter equivalent (TCE) average plummeted to $10,300 per day during the second quarter of 2023 from $26,400 per day during the same quarter of last year.
“The consolidated net loss for the quarter was mainly attributable to the lower freight rates upon the weak dry bulk shipping market sentiment amid the challenging macroeconomic and financial environment as compared to the strong market freight rates in dry bulk shipping sector in the second quarter of 2022,” the company said in a statement.
The average spot rate for supramaxes during the second quarter of 2023 cascaded to slightly more than $8,200 per day at the end of the three-month period from just over $13,000 per day at the start of the quarter, according to the Baltic Exchange.
By comparison, the average spot rate also fell during the second quarter of 2022, but from much higher levels than during this year’s second quarter.
It declined to just under $25,400 per day at the end of the quarter from a hair above $30,000 per day at the beginning of the three-month time frame.
“The market sentiment gradually changed in March 2023 and the market freight rates moved upwards driven by the increase in demand for dry bulk commodities and limited supply of vessels,” Jinhui said.
“However, the market freight rates for the first half of 2023 were still weak due to the port congestion eased globally, and the demand for dry bulk commodities was under pressure as a result of the higher inflation and interest rates.”
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