Sinotrans Shipping slid back into the red for the first half of 2015, turning to a $18.3m loss from a small $2.3m profit in the previous corresponding period.
The dry bulk and container shipping arm of Chinese state-owned Sinotrans & CSC Group continues to feel the pain of low rates. The company is now considering diversifying its shipping business.
Revenue of the Hong Kong-listed company dropped 19% year on year (y/y) to $485.1 million , a stock filing of Sinotrans Shipping said on 14 August.
”The recovery of global economy was slow and uneven, among which the growth of developed economies has picked up but was still weaker than anticipated, while the increase in emerging economies such as China continued to slow down. As a result, the growth of international trade and seaborne demand stayed in low gear,” it added.
The company says it will focus on short-term timecharter, increasing its voyage charter business, and seizing opportunities to charter out vessels in the volatile market, to stabilise income and seek new profit drivers.
It has disposed of 15 aged vessels in the first half of 2015.
Li Zhen, president of Sinotrans said that the company is planning to move into new businesses including car carriers and breakbulk shipping. He revealed that the parent group Sinotrans & CSC will establish a new management entity in September and gradually inject more major assets into Sinotrans Shipping, which will remain the main ship operating platform of the group.