Pac Basin pins shortfall

Pacific Basin Shipping says 40% of dry cargo newbuildings failed to arrive as planned in the first half of 2014.

Hong Kong-listed Pacific Basin expects the significant gap between planned and actual vessel arrivals to continue in the coming months, chief operating officer Jan Rindbo says.

Its figures emerged as executives addressed investors after a disappointing first half performance.

Pac Basin booked a loss of $90.7m in the six months to the end of June, including a $63.9m impairment on its towage business.

Barclays Capital says the company’s dry bulk division suffered a net loss of $6.5m against a profit of $11.3m during the opening half of 2013.

“The disappointment was mainly driven by depressed freight rates in 2Q14, fall in volumes from Indonesia export ban and loss of revenue days to the dry docking of owned fleet,” its analysts said.

Mats Berglund, chief executive of Pac Basin, admitted the second quarter was weak for dry bulk, however, he says a benefit of the poor market is that new ship ordering has substantially stopped.

“The future fundamentals look better, especially for smaller bulk carriers of the type in which we specialise,” he said on a conference call.

“We are very happy with the 51 ships we have acquired in the past two years which more than doubled our owned fleet and are well suited to our trades.”

He added:  “We remain selectively open to the acquisition of handysize and handymax ships at appropriate prices but expect a much slower pace of acquisitions compared to 2013.”