Navios South American Logistics (NSAL) has revealed a big jump in product tanker contract rates so far in 2023.
The Greek-controlled tanker, terminals and barge company said improved cabotage market conditions in the east coast Hidrovia region led to a 36% annual increase to $25,700 per day.
For 2022, NSAL managed a 28% annual increase in fleet utilisation.
Tanker Ebit was $410,000 in the fourth quarter compared to a loss of $2.5m in the same period of 2021, while revenue rose from $6.8m to $12.1m.
Tanker demand had collapsed in 2021 due to Covid-19, but has rebounded strongly.
Greece’s Navios Maritime Holdings has a 63.8% stake in NSAL, which owns seven clean tankers built from 2008 to 2018, ranging in size from 1,700 dwt to 17,500 dwt.
The South American subsidiary’s iron ore port handled 1.5m tonnes of transshipments — up 123% over the year.
Further production and export increases are likely in 2023, the company said.
There was a 38% annual growth in grain port terminal volumes driven by increased Uruguayan exports.
Navios Holdings chief executive Angeliki Frangou told a conference call: “[The situation in] Ukraine has impacted demand for commodities.”
New business sought
“We are focusing on maximising the returns from the existing assets by being adaptive and offering innovative logistics solutions, while also looking to develop new business.”
NSAL said China’s emergence from the Covid-19 pandemic is providing a catalyst for iron ore port and barge transportation.
Barge convoys were fixed under period contracts at attractive rates in 2022.
NSAL’s Ebitda dipped to $10m from $10.5m in the fourth quarter.
But the net loss was reduced to $12m from $39.6m the year before.
Revenue was up at $52m against $49m in 2021.
