Shanghai-listed Ningbo Marine posted a profit of CNY4.4 million (USD0.7 million) for the first half of 2015, returning to the black after the loss of CNY5.1 million the previous year.
The company’s revenue also rose 7.6% year on year (y/y) during the review period, from CNY496.4 million to CNY534.2 million this year.
Shipping still remained in recession when it entered 2015, stated the company in its filling to Shanghai Stock Exchange. Since the recovery of advanced economies is weak, the growth of emerging markets in Asia get slower, and commodity prices keep dropping, all of which have depressed the shipping market.
China’s coastal shipping is also sluggish because of the weak demands of domestic industries and more strict rules on environment protection, according to the company. From January to June 2015, China Coastal Bulk Freight Index released by Shanghai Shipping Exchange has dropped to 865.23 points on average, down 6.2% y/y, and the China Coastal Bulk (Coal) Freight Index slumped 22.6% y/y to 525.44 points.
Ningbo Marine is not optimistic about the outlook of shipping in the second half of 2015, since it believes that the recovery of the world economy is full of uncertainty, and shipping will continue to feel the stress brought by slower trade growth.
However, the company pointed out that the One Belt One Road policy and the strategy to develop economy along the Yangtze River may bring more chances for shipping.
This post was sourced from IHS Maritime 360: View the original article here.