The group results are an improvement on 2013's $13.8m and $36.6m losses in the third quarter and first nine months respectively, but CMB's dry bulk operator Bocimar has recorded a significant deterioration since last year.
Bocimar contributed a $15.1m loss to the group in the third quarter, down from a $5.3m profit in Q3 2013. Average capesize earnings fell from $25,288 per day in Q3 last year to $18,478 per day in the third quarter of 2014.
"Against all expectations the markets for the transport of dry bulk did not recover," the company stated in its earnings release.
Despite a growth in iron ore production and transportation globally, the increase in the supply of capesize tonnage has exceeded the rise in demand. Further troubles were added by a weakening in coal demand.
Bocimar cancelled orders for four newbuilds at Samjin earlier this year, and has dropped another six orders due to the bankruptcy of the yard. All advances paid for the construction of the ships have either been returned with interest already, or are due to be shortly.
CMB is currently investigating a possible acquisition of Delphis Hong Kong and its 14 owned and part-owned container ships. Given the possible conflicts of interest involved in the transaction arising from Delphis being owned by CMB shareholder Slaverco, a committee of independent directors have been appointed to oversee the deal.
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited.  Add Seatrade Maritime News to your Google News feed.   Â
