The shipping arm of locally-listedparent Compagnie Maritime Belge (CMB) turned in a gain of $5.4m Thursday, versus a profit of$7.5m 12 months prior.

In today's earnings report it noted the result included a capital gain of nearly $1.5m from the sale of the172,000-dwt Mineral Sines (built 2002).

The company’scapesize, panamax, handymax and handysize bulkers achieved day rates of around$25,288, $16,753, $9,572 and $8,568 on average, respectively.

The same vesselclasses reported daily averages of approximately $22,666, $10,533, $10,301 and$7,747, respectively, in the comparable stretch of 2012.

In a noteto investors Bocimar acknowledged that the first half of 2013 was plagued byrates that “barely covered operating costs” but was quick to point out that arebound started to materialise at the start of the third quarter.

“Capesizespot rates increased from $15,000 per day early July to more than $40,000 perday by the end of September,” it said. “Moreover, the strengthening of thecapesize spot market has also had a positive effect on other segments, be itwith a certain delay.

“Takinginto account Bocimar’s considerable spot market exposure there is an immediateeffect on the results, which is already measurable in the third quarter resultsand will be even more noticeable in the fourth quarter. Hence, Bocimar expectsa strong fourth quarter.”

The companysaid the outlook for 2014 and 2015 looks promising as well as it believesnewbuilding orders have fallen to a five-year low and expects to see heighteneddemand for iron ore and other dry-bulk cargoes in the years ahead.

“Theexpected growth of world seaborne trade of other commodities bodes well for thehandysize segment,” it continued. “It is expected that the global handysizefleet will barely expand in the coming two years.”

Bocimarsays it is “well positioned” in both the capesize and handysize segments to “takefull advantage of improving freight rates” given its exposure to the spot market,which has enjoyed significant gains as of late but is still subject to uncertainty.

While theindustry downturn has helped to keep the orderbook in check, demand for fuelefficient tonnage and other factors like a sharp decline in newbuilding pricesset by shipyards that are struggling to stay afloat are fuelling a flood ofnewbuilding projects.

Lastweek, US sale-and-purchase specialist Compass Maritime Services warned clients thatthe orderbook “is surging” and now includes more than 250 capes, 260 kamsarmaxes,160 panamaxes, 575 supramaxes and 400 handysizes due for delivery over the nextthree years.

AsTradeWinds has reported, CMB is often the first publicly-traded bulkeroperator to report quarterly earnings. Many market researchers use its raterecap as a guide when preparing forecasts for investors who track otherdry-bulker equities, like Genco Shipping & Trading.

A copy of CMB's third quarter earnings report can be viewed in full by clicking on the link located under the Related Media section to the right of this article