AfricaÆs largest carrier expecting tough year
South Africa-based Grindrod, Africa's largest shipping company, expects earnings to fall this year due to bad rates, according to a Bloomberg report Thursday.
The projections for this year come after a year in which profits doubled for the carrier, which handles dry bulk and bulk goods.
Net income rose to $217 million in 2008, up from $120 million in 2007. Revenue rose significantly too, from $1.8 billion to $3.4 billion.
A drop in demand, signaled by a huge slide in the Baltic Dry Index in the second half of 2008, is expected to hamper revenue and profit this year.
'The effects of the credit crisis impacted on the global economy, resulting in significant reduction in shipping activity,' Grindrod said in a statement.
The company’s core business involves a regular bulk parcel service from ports in South Africa, East Africa, Mozambique and Namibia to Europe, the United States and the Mediterranean, with eight to 12 scheduled sailings per month. The service carries a variety of bulk cargo including chrome ore and ferrochrome, and breakbulk cargo like steel.
Grindrod’s subsidiary Island View Shipping offers regular service to the Mississippi River.
Africa’s largest carrier expecting tough year
