Hong Kong-listed Sinotrans Shipping said in a regulatory filing that the net loss of 2016 is expected to record a substantial increase as compared to 2015.
In 2015, Sinotrans Shipping booked a loss of $81.54m, reversing from the profit of $1.86m in 2014.
“The overall global economy recovered slowly, while the economies of China and other emerging markets grew at a slower pace,” Sinotrans Shipping said.
“Coupled with the fact that international trades and dry bulk seaborne volume continued to weaken, the dry bulk ship charter rates and freight rates further decreased, with a significant decrease in the ship values,” the company said.
“As at the end of 2016, based on a preliminary review, it was expected that the long term intrinsic value of some self-owned vessels would be much lower than their carrying amounts, and an impairment would be required. However, the amount of impairment loss is yet to be determined.”