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Mercator Lines sinks deeper into the red

Mercator Lines (Singapore) sank deeper into the red in the second quarter of 2013 as revenue plunged amid the sluggish dry bulk shipping market.

Lee Hong Liang, Asia Correspondent

October 28, 2013

1 Min Read
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In the quarter ended 30 September 2013, Mercator Lines reported a net loss of $5.43m compared to a loss of $232,000 in the same period of last year.

Revenue for the quarter dropped 40% year-on-year to $21.42m due mainly to a fall in shipping spot rates, termination of charter in vessels, disposal of vessel and new contracts at rates lower than the previous rates.

Shalabh Mittal, managing director and ceo of Mercator Lines, believed that the dry bulk shipping market is showing some signs of recovery as the Baltic Dry Index (BDI) has gradually strengthened and asset prices have also increased by more than 10% over the last six months.

“Slowdown in deliveries and newbuildings, high scrapping, combined with a gradual recovery in world economy with sustain demand from Chinese economy should bode well for dry bulk shipping industry going forward,” Mittal said, but adding that the company is cautiously optimistic on the prospects of the industry.

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dry bulk shipping

About the Author

Lee Hong Liang

Asia Correspondent

Singapore-based Lee Hong Liang provides a significant boost to daily coverage of the Asian shipping markets, as well as bringing with him an in-depth specialist knowledge of the bunkering markets.

Throughout Hong Liang’s 14-year career as a maritime journalist, he has reported ‘live’ news from conferences, conducted one-on-one interviews with top officials, and had the ability to write hard news and featured stories.

 

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