Mercator narrows full year loss

Net loss for the financial year ended 31 March 2014 was reported at $22.76m, an improvement from a loss of $76.77m in the previous financial year.

Revenue, however, went down by 31% year-on-year to $75.3m.

“Improvement in market fundamentals and cost rationalisation measures adopted by the company have helped us achieve better margins. The company will cautiously monitor the market movements and look for suitable growth opportunities,” said Shalabh Mittal, managing director and ceo of Mercator.

The shipowner noted that the dry bulk shipping industry continues to remain volatile, and the Baltic Dry Index (BDI) dropped to 1,362 points as on 31 March 2014 as against a high of 2,277 points on 31 December 2013. The market rate of panamax vessels stood at $7,600 per day on 31 March 2014, almost half of what it was at at on 31 December 2013, the company pointed out.

It added that lower than expected tonnage demand in the Atlantic Basin coupled with a slowdown in the Chinese imports in the first three months of this year are primarily responsible for the lower freight rates.