As forecasted, Pacific Basin Shipping posted a $285m 2014 loss on the back of almost flat revenue rises, and charges on chartered-in vessel costs and bunker costs as well as for the disposal of its towage-related business.
This included $130m in non-cash impairments and provisions reflecting significant changes in the dry bulk and bunker fuel markets; and $91m in towage-related impairment and business disposal charges. The sharp turnaround from the $1.5m net profit last year was also blamed on the difficult market conditions with very low dry bulk market rates, Weak revenue barely rose to $1.72bn from $1.71bn the year before.
On its performance, Pacific Basin said in a stock market announcement noted the poor start to the year with the Baltic Dry Index falling to its lowest since indices began in 1985 and a dysfunctional freight market in some regions.Looking ahead it said: "We expect weak market to continue in 2015 and take a cautious view on freight earnings outlook.
"The handysize specialist noted that while net fleet growth has reduced, excessive dry bulk supply is not yet fully absorbed. Meanwhile lit expressed concern that low fuel prices could lead to faster transits and a resulting potential further increase in tonnage supply.
On the market, Pacific Basin said: "Demand growth continues to be threatened by softer outlook for China and most developed economies."
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