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Samudera books full year loss of $5.3m

Samudera books full year loss of $5.3m
Samudera Shipping Line has posted a full year loss in 2016 amid challenging operating environment in the main shipping segments of containers, bulkers and tankers.

Singapore-listed Samudera registered a loss of $5.3m in 2016, reversing from the profit of $4.11m in 2015.

The full year revenue decreased by 18% year-on-year to $260.47m as pressure on container shipping freight rates and a smaller bulk and tanker fleet led to lower earnings.

Samudera said its revenue from the container shipping business fell by 16.6% year-on-year to $225.5m due to prevailing pressure on freight rates.

The bulk and tanker segment operated a smaller fleet in 2016 compared to 2015, following its disposal of two tankers in 2015 and another three during the financial year.

“The group expects the container shipping industry to remain difficult in the current year,” Samudera commented.

“Trade growth is expected to remain sluggish amid global economic uncertainties and the supply overcapacity situation is expected to persist. As such, freght rates are likely to remain under pressure,” the company said.

“The tanker business is likely to remain stable, while a recent improvement in commodity trading could herald in a needed boost in charter rates for the bulk shipping business,” it added.