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Samudera reports Q3 loss on impact from Hanjin Shipping exposure

Samudera reports Q3 loss on impact from Hanjin Shipping exposure
Samudera Shipping Line has fallen into the red for the third quarter on lower contributions across all business segments, and is continuing with efforts to contain the impact from the demise of Hanjin Shipping.

Net loss for the quarter ended 30 September 2016 was reported at $3.79m as against the profit of $1.23m in the year-ago period.

The quarterly revenue declined by 18.8% year-on-year to $61m on reduced earnings from its container, bulk and tanker shipping businesses.

On the back of prevailing pressure on freight rates and a 2.1% decrease in volume handled to 273,000 teu largely due to the loss of volume from Hanjin Shipping after it ceased operation, revenue from the container shipping segment dropped 17.2% year-on-year to $52.1m for the third quarter.

“The group cooperated with Hanjin on slot exchange arrangements for various services in the (Asian) region. The group is proactively looking for replacement cargo on the affected sectors. If necessary, it will also undertake the realignment of service routes to mitigate the impact going forward,” Samudera said.

Last month, Indonesia’s Samudera admitted that it has an exposure of $2.5m to $3m to beleanguered Hanjin Shipping.

“The container shipping industry continues to face strong headwinds. Amid slowing trade growth and excess capacity in the market, freight rates are expected to remain depressed,” Samudera commented.

“The tanker business is expected to remain relatively stable, while the bulk shipping business may see improvement going forward, with the recent development in commodity trading and a reduction in new deliveries entering the market.”