An uphill battle for dry bulk shipping will continue in 2013 against the backdrop of tonnage surplus, excess shipbuilding capacity and lower demand growth of dry seaborne trade.
“Although recent activities that positively reduced the supply side such as slippage and scrapping have been high, we expect that our industry may remain volatile before it gets better,” Jinhui said.
“Fewer banks are now offering ship financing against such outlook, especially given the extraordinary challenges financial institutions are already facing,” it added.
Jinhui also noted that the high speed economic growth period of China has past, and Chinese leaders will need to introduce new effective policies and measures to preserve positive growth rate.
The prevailing weak market resulted in Jinhui registering a 42.2% plunge in 2012 to $35.58m compared to $61.59m in 2011.
Revenue for the year ended 31 December 2012 dropped 23.3% year-on-year to $234.04m.
Hong Kong-listed Jinhui blamed the decline in earnings mainly due to the expiration of some high earning charter contracts in late 2011 and early 2012, and lower charter rates upon redeployment of its fleet in prevailing weak market upon contract renewal in particular to larger size fleet.
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