Jinhui earnings fall on weak bulk market

Jinhui Shipping and Transportation saw first half profit plunged as revenue fell due mainly to the weak dry bulk freight market.

In the six months ended 30 June 2014, profit came up to $3.91m, a significant decrease from a gain of $25.4m in the same period of last year.

Revenue in the first half dropped 30.8% year-on-year to 75.06m on weak freight rates as demand fell.

Hong Kong-listed Jinhui also only managed to scrap a second quarter profit of $608,000 compared to $1.09m in the previous corresponding period.

“Dry bulk shipping market in the second quarter of 2014 remained lackluster as the pace of newbuildings delivery outweighed the demand for seaborne transportation due to the unexpected weakening of global minor bulk trading activities in early 2014,” Jinhui said.

It added that the group’s revenue and operating results during the first half were also impacted by reduced number of both owned fleet and chartered-in fleet in operation and lower charter rates earned.
Source: Seatrade Global