African bulk carrier sees profits halved
Africa’s biggest shipping company Grindrod said Thursday its first half profits fell more than 50 percent, with more pain to come in the second half, Reuters reported.
The primarily dry bulk carrier Grindrod said new vessel capacity would put downward pressure on rates, even as dry bulk demand improved slightly. The news report didn’t specify Grindrod’s revenue or profit.
“We’ve seen some improvement in volumes of dry cargo in July and August … we don’t know if is sustainable or a result of destocking in China,” Grindrod CEO Alan Olivier said. “And demand from the East has not taken up the slack from the West.”
The South Africa-based carrier, which also has a freight logistics arm, said it cut its fleet from 55 to 49 ships to better match demand and may make further cuts 'if trading conditions deteriorate,' the report said.
Dry bulk carriers have been hurt by the collapsing Baltic Dry Index, which has fallen about 80 percent from its high of 11,793 points last year.
African bulk carrier sees profits halved
