Singapore-listed Indonesian shipping company Samudera Shipping Line said on 30 July that its profit in the second quarter of 2015 fell 26% year on year (y/y) to USD3.2 million as the weak freight market hurt its revenue.
Revenue from Samudera’s intra-Asia container shipping business fell 16.6% y/y to USD68.4 million in the second quarter of 2015 due to weaker demand in Indonesia and it also removed non-profitable routes.
Revenue from the bulker and tanker businesses fell 15.9% y/y from USD13.7 million to USD11.5 million in the second quarter of 2014. The company operated fewer vessels in the second quarter of 2015, following the disposal of non-performing vessels earlier on, as well as the docking of an oil tanker for scheduled maintenance during the period under review.
Operating conditions for all three segments Samudera is involved in are expected to remain challenging in the near to medium term.
Samudera said, “Strong competition continues to exert downward pressure on freight rates. While lower bunker price and charter-in rates should help to mitigate the impact, the group expects these to be volatile in the near term as well. The group plans to explore new opportunities in existing markets and to grow its market share.
“While tanker charter rates have remained relatively stable, excess tonnage in the market is expected to depress charter rates for the group’s bulk carriers. This will adversely impact its bulk and tanker business.”
Samudera said it continues to focus on improving the operational efficiency of its business while maximising the utilisation of its fleet.