January 31 - Hong Kong-based Sinotrans Shipping has issued a warning that it expects a substantial increase in net losses for the 12 months ending December 31, 2016, compared to the deficit recorded in 2015.
Sinotrans Shipping recorded a loss of USD66.33 million in 2015, compared to a profit of USD1.86 million in 2014.
In the statement, which followed a preliminary review of the Group's unaudited consolidated accounts for the 2016 financial year, Sinotrans Shipping said: "The overall global economy recovered slowly, while the economies of China and other emerging markets grew at a slower pace.
"Coupled with the fact that international trades and dry bulk seaborne volume continued to weaken, the dry bulk ship charter rates and freight rates further decreased, with a significant decrease in the ship values," the company said.
"As at the end of 2016, based on a preliminary review, it was expected that the long term intrinsic value of some self-owned vessels would be much lower than their carrying amounts, and an impairment would be required. However, the amount of impairment loss is yet to be determined."