Precious Shipping are maintaining a confident outlook despite increased second quarter losses.
Net losses for 2Q15 for the Thai dry bulker rose to USD12.03 million against losses of USD1.62 million in same quarter last year. Average earnings per ship per day were sharply down at USD5,757 from USD8,687 in 2Q14. The only small uplift for Precious was average operating expenses, again per ship per day, dipping to USD4,625, from USD4,769 in the 1Q14.
Despite the figures, Precious sounded a longer term note of optimism. Managing director of the Thailand-based company, Khalid Hashim, acknowledged on the demand side “nothing much has changed” but pointed out in an e-mail to IHS Maritime that “rates, especially in the Capesizes, have gone very nicely”. His explanation is twofold.
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Firstly scrapping has removed more than 20 million dwt of dry bulk ships with the majority being Capes, resulting in marginal negative growth in supply for this sector in the 1H15. In addition, Brazil has shipped more iron ore to China in the first six months of this year than it did in the same period last year, he pointed out. Brazil is approximately three and a half times more tonne/mile intensive than moving iron ore from Australia, he added.
“Both these factors have pushed the Capesizes up from USD4,000 levels to above USD17,000 as of yesterday. This has changed the mood in the market as a whole and all other sectors have also started to improve, may not be as much as the Capes, but improve they have,” Hashim said.