Singapore-based Samudera Shipping Line has recorded a drop of 17.2% in revenue from the container shipping business in the aftermath of Hanjin Shipping’s filing for court receivership in late August.
On the back of prevailing pressure on freight rates and a 2.1% decrease in volume handled to 273,000 TEUs, largely due to the loss of volume after Hanjin ceased operation, revenue from the container shipping business declined to USD 52.1 million in the third quarter of 2016 from USD 63 million recorded in the same period a year earlier.
The company’s bulk and tanker division operated a smaller fleet during the quarter following the disposal of four tankers since December 2015. This, along with the
scheduled dry-docking of tanker and lower charter-out rates for the group’s vessels, led to a 29.3% plunge in revenue from the bulk and tanker business to USD 7.7 million in the third quarter, against USD 11 million seen in the three-month period a year ago.
Samudera Shipping Line cooperated with Hanjin on slot exchange arrangements for various services in the region.
Following Hanjin’s receivership, the group said that it is engaged in ensuring “the continuity and reliability of its service routes” as it is looking for replacement cargo on the affected sectors.