Saturday, October 31, 2009

Shipping Profits Dip Against Other Trade For Essar Shipping Ports And Logistics

Sharp Fall in Charter Rates Cuts Indian Corporations Profits
Shipping News Feature

INDIA – The parlous state on the transport industry over the past year can be illustrated perfectly by figures released yesterday by Indian oil to stevedoring company Essar Shipping Ports & Logistics.

Despite what appear to be healthy figures in difficult times it is the company’s oilfield operations which have buoyed up what otherwise would have been considerably less impressive financial statistics.

Earnings before Interest, Taxes, Depreciation, and Amortization rose by 71% and cash profit by almost 200% in Q3 to September 2009 against last years comparable figures. Behind these headlines however it should be noted that, typical of other traders in the field, several of its maritime clients have deferred orders and its earnings in the marine transportation segment of its business has dived, 46% down on fleet charters and generally lower charter rates across the board.

The company claims finance is in place for its proposed bulk terminal in Salaya, an underdeveloped area of Gujarat closely linked to sailing ship development, and is about to be secured for further port development at Vadinar near its existing refinery.

In other Indian news Great Eastern Shipping also predicted a continued slump in tanker rates and announced it would be drydocking three vessels for the next three months. It did however feel that bulk rates are liable to rise slightly over the same period.