Precious Shipping has seen a near five-fold increase in its first-quarter net profit on the back of improved freight rates.

The Bangkok-based shipowner has reported net income for January to March of 2024 of $11.4m versus the $2.3m achieved 12 months earlier.

Average earnings per day per ship during the first quarter came in at $12,433 against an average of just over $10,000 per day in the corresponding period in 2023.

Its ultramax bulkers earned an average daily rate of $14,218 against $10,671 a year ago, while its supramax vessels earned an average daily rate of $13,417 versus $9,842 in the first quarter of 2023.

Daily operating costs per ship were $5,379, higher than the shipowner’s target of $5,200 for the year, and higher than the year-ago figure of $5,231 per ship.

Precious attributed the year-on-year increase in vessel operating costs to a combination of higher dry-docking and special survey expenses, together with the depreciation of the Thai baht to the US dollar.

“During the first quarter, the Baltic Handy Size Index [BHSI] averaged 666 points, derived from an average time-charter [TC] rate of $11,986 per day. In comparison, our handysize fleet earned $11,322 and underperformed the BHSI TC rate by 5.54%,” Precious said.

“The Baltic Supramax Index [BSI] averaged 1,178 points, derived from an average TC rate of $12,961 per day. In comparison, our supra/ultra fleet average earnings were $13,794 per day and outperformed the BSI TC rate by 6.43%.”

The first quarter saw Precious maintain its activity in the secondhand market, disposing of two older ships and acquiring a younger vessel.

The disposals included the 53,857-dwt Wikanda Naree (built 2013) for $13.66m and the 28,500-dwt Rattana Naree (built 2002) for $6.5m.

Precious also added Interlink Maritime’s 40,000-dwt Interlink Amenity (built 2018) to its fleet for $25.25m.

Following these transactions, Precious’ fleet stands at 37 vessels with an aggregate capacity of around 1.6m-dwt as of 31 March 2024.

Separately, Precious confirmed that one of its bulkers had been left stuck in the Port of Baltimore by the collapse of a bridge.

Its 35,900-dwt Phatra Naree (built 2017) was discharging cargo at a berth 900 metres from the point where the container ship struck the bridge.

“The vessel had arrived in Baltimore on 18 March 2024 to discharge 31,500 tonnes of alumina loaded at Sao Luis, Brazil,” Precious said.

“The Dali accident resulted in the vessel having to wait until 25 April before she was able to sail out of Baltimore harbour.

“This accident has had no commercial impact on Precious, as the vessel is on time charter to a European customer until at least June 2024,” it added.