Hong Kong-listed Sinotrans Shipping incurred a loss of USD18.3 million for the first six months in 2015 because of the depressed bulk shipping market in early 2015.
Revenue dropped 19% year on year (y/y) to USD485.1 million , a stock filing of Sinotrans Shipping said on 14 August.
To stabilise income and seek new profit drivers, the company says it will focus on short-term timecharter, increasing its voyage charter business, and seizing opportunities to charter out vessels in the volatile market.
The average daily charter hire rate/timecharter equivalent rate of its self-owned dry bulk vessels fell 25% y/y to USD8,122. The average income per teu also decreased 6% y/y to USD449.
During the first six months of 2015, the company scrapped 15 old bulk carriers to reap net gains of USD5.9 million after recognising government subsidies for retiring old tonnage.
Sinotrans Shipping took delivery of one eco dry bulk newbuilding vessel with a capacity of 78,000 dwt.
As of 30 June 2015, the company owned a fleet of 47 vessels with an aggregate capacity of 3.42 million dwt and an average age of approximately 7.9 years, down by about two years as compared to the end of 2014. The total controlled fleet included 103 vessels with an aggregate capacity of approximately 7.06 million dwt.
In addition, the company has a total of nine newbuildings with an aggregate capacity of 590,000 dwt, which are expected to be delivered from the second half of 2015 onwards.
“By continuing the fleet restructuring, our advantages of the modern, large-sized, and low-carbon fleet will be further strengthened, and our market competitiveness will be better enhanced,” it said.