Bulk carrier Sinotrans Shipping rode a wave of Chinese demand for iron ore and coal to a tripling of first half profits, Bloomberg reported Tuesday.
Net profit from January through June rose to $190.8 million from $57.6 million during the same period in 2007, the carrier told the Hong Kong Stock Exchange this week. Sinotrans went public in Hong Kong last fall.
It's the latest example of rising bulk rates driving profits up for carriers. Japanese competitors NYK Line and MOL earlier this week announced big profit increases, mostly due to increased revenue from bulk activities, while fellow Japanese carrier "K" Line, which is more heavily dependent on container trade, saw profit decline more than 16 percent in the first quarter of its fiscal year.
Bulk rates have risen 61 percent over the first half of 2008 versus the same period last year, Bloomberg reported. And capacity is so tight, Sinotrans has already forward booked space on 85 percent of its capacity for the rest of this year and 20 percent for 2009.
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