Braemar Shipping Services plc express doubt on sustainability of recent freight rate surge

Braemar Shipping Services plc., the global shipping and energy services provider, yesterday announced its Interim Management Statement published in accordance with the UK Listing Authority Disclosure and Transparency rules, for the period from 1 March 2013 to 18 June 2013, ("the Period").
Shipbroking
We are encouraged by the performance of our chartering desks where activity levels have been strong. We did not expect any recovery in freight rates in dry bulk and tankers, and while we have seen some recent recovery, we are not confident it will be sustained over the longer term. Our Offshore desk has started well in a strong market. Although there have been some departures from our Sale & Purchase department the desk is delivering in line with expectations, with demolition business continuing to be a significant contributor. We have seen increased activity in the newbuilding sector which will start to rebuild the forward order book.
We will continue to invest in the growth of our core Shipbroking division. We established a new desk of six tanker brokers in Houston in May this year and are in the process of setting up a new desk in Oslo. We continue to seek to recruit new talent as required.
Technical
Braemar Technical Services has made a strong start driven mainly by Braemar Offshore, our surveying and engineering business in the Far East which is benefitting from energy-led high activity across the region. Braemar SA and Adjusting have started the year well and we expect to build on this good start following the recruitment of some experienced industry professionals in the last few months. Braemar Engineering has successfully commenced work on a significant three-year contract for the design and site supervision of six new LNG carriers.
Logistics
Cory Brothers has made a solid start to the year in a tough market-place where pressure on margins persists. Opportunities to compete for new business are plentiful and we expect to continue growing our share of the market in the UK and Singapore.
Environmental
The Environmental division, now without the benefit of the Rena contract, has performed steadily in the Period.
Employee Share Ownership
We are committed to raising the level of employee shareholding in the Company over the next few years and expect to achieve this by purchasing shares in the market from time to time. These shares will be used to cover a profit related systematic award of shares under the Group's deferred bonus plan.
Summary
There has been little change in the markets in which we operate since the end of our last financial year. Overall the performance of the Group in the Period is in line with the Board's expectations, and the outlook for the year remains unchanged.
Source: Braemar Shipping Services