Thoresen Shipping saw its net profit shrink by almost 70% in the second quarter as it succumbed to the dramatic decline in dry bulk rates.
The Thai-backed bulker owner posted a net income of THB 85.5m ($2.7m) versus the THB 270.2m reported 12 months ago.
Freight revenues for the quarter were up 4.4% at THB 1.4bn, mainly due to increased service days for chartered-in vessels.
However, the fleet saw its daily average time charter equivalent (TCE) fall 22% year-on-year to $9,385 as dry cargo freight rates struggled to recover following the mining disaster in Brazil.
This was partially offset by the fact that the Thoresen fleet outperformed the net supramax timecharter rate of $ 8,061 per day by 16%.
Thoresen said the BDI is expected to continue in an upward trend, due to the restart of mining operations in Brazil.
"Looking ahead to 2020, the views from shipping analysts expect a gradual re-balance of fundamentals in the bulker sector, although demand side risks remain," it said.
"Supply growth is expected to be limited by the positive impact of the forthcoming IMO 2020 global sulphur cap, including scrubber retrofit time, slower operating speeds and increased recycling."
At the end of the quarter Thoresen owned 21 vessels with an average size of 55,285-dwt and an average age of 12.21 years. No vessel was acquired or sold during the quarter.
