Low Chinese demand capping dry bulk rates

“Low demand for commodities in the Greater China Region, and the oversupply of vessels has led to pressure on the freight rates in the dry bulk market,” Courage said in a statement.

“The group expects the financial performance for 2013 to be adversely affected by the current challenging economic conditions and uncertain outlook,” it added.

Tough business conditions in the dry bulk sector resulted in Hong Kong-listed Courage posting a 2012 full year net loss of $10.36m, though the company managed to narrow losses from a deficit of $28.86m in 2011.

Revenue for the year ended 31 December 2012 dropped to $18.76m compared to $21.69m in 2011. Courage attributed the poor results largely to losses on disposal and impairment losses of vessels.

Courage affirmed that it will maintain its cost effective structure and focus on keeping its fleet well-deployed and running efficiently. The updated tonnage of the group's fleet is approximately 410,000 dwt.