Sponsored By

Samudera Shipping returns to the black on lower costs

Regional container carrier Samudera Shipping Line has returned to the black in 2014 after it managed to significantly reduce its cost of services.

Lee Hong Liang, Asia Correspondent

February 27, 2015

1 Min Read
Kalyakan - stock.adobe.com

Net profit for last year came up to $14.28m as against a loss of $2.19m in 2013. The gain was aided by a 13% decline in the cost of services to $332.47m from $381.97m, largely attributable to the renewal of expiring long term charter-in contracts at lower rates during the financial year.

The shipowner also took steps to rationalise its network, dispose of poor performing vessels and exit poor performing services.

Revenue for 2014, however, dropped by 6.9% to $364.15m from $391.18m.

Looking ahead, Samudera Shipping expects operating conditions to remain challenging.

“In container shipping, freight rates are likely to remain under pressure. The bulk trade is adversely affected by an oversupply situation and charter rate for bulk carriers will be affected,” the company commented.

“The tanker business, on the other hand, should remain stable as the group’s vessels remain gainfully employed,” it added.

Read more about:

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.

 

Get the latest maritime news, analysis and more delivered to your inbox
Join 12,000+ members of the maritime community

You May Also Like