Weak dry bulk rates are expected to take their toll on Sinotrans Shipping's financial result for 2016.
The Chinese shipowner said it expects its net loss for last year to increase “substantially”.
This means its red ink for the 12 months of 2016 will run to more than $81.5m, which is the deficit reported by the company in 2015.
Although Sinotrans shipped more containers in the first nine months of 2016, the slow recovery of the global economy will have an effect on the company’s results.
Sinotrans also cited decreased dry freight rates as another reason for the upcoming loss.
The Chinese owner will take an impairment charge on the value of its ships but the exact amount is yet to be determined.
It stressed, however, that the financial position of the group remains stable.
Shares in Sinotrans were losing 1.24% on the Hong Kong stock exchange earlier today and were changing hands at HKD 1.59 ($0.20) each.
