Sweden's Transatlantic loses $7.3 million
Transatlantic AB, the leading Swedish breakbulk and roll-on, roll-off shipping line, said it breached loan covenants after lower cargo volume and weak freight rates pushed it into the red in the third quarter.
The carrier, which runs container services in the North Sea, break bulk operations in the Baltic and a ro-ro line between North Europe and the U.S. East Coast, swung to a pre-tax loss of $7. 8 million in the three months to September 30 from a $13.7 million profit in the same period in 2008. Revenue shrunk to $80.7 million from $108 million.
Transatlantic said it is in negotiations with banks over its breached loan covenants.
Baltic cargo volume fell after Stora Enso, Europe's biggest paper company, closed mills. Pulp shipments to the United States declined as mills that remained open reduced production during the summer vacation. Eastbound volume, which was strong until July, fell in August and September due to increased inventories and price pressure on newsprint in Europe.
Two ro-ro vessels remain in lay-up awaiting an upturn in cargoes to the U.S. East Coast in particular.
Increased container traffic on routes between Finland and Sweden and the German ports of Bremerhaven and Hamburg enabled Transatlantic to re-activate a laid-up box ship in the third quarter.
Transatlantic lost $15.5 million after tax in the first nine months of 2009 against a year earlier profit of $29.9 million as revenue fell to $254 million from $280 million.
The carrier, which runs container services in the North Sea, break bulk operations in the Baltic and a ro-ro line between North Europe and the U.S. East Coast, swung to a pre-tax loss of $7. 8 million in the three months to September 30 from a $13.7 million profit in the same period in 2008. Revenue shrunk to $80.7 million from $108 million.
Transatlantic said it is in negotiations with banks over its breached loan covenants.
Baltic cargo volume fell after Stora Enso, Europe's biggest paper company, closed mills. Pulp shipments to the United States declined as mills that remained open reduced production during the summer vacation. Eastbound volume, which was strong until July, fell in August and September due to increased inventories and price pressure on newsprint in Europe.
Two ro-ro vessels remain in lay-up awaiting an upturn in cargoes to the U.S. East Coast in particular.
Increased container traffic on routes between Finland and Sweden and the German ports of Bremerhaven and Hamburg enabled Transatlantic to re-activate a laid-up box ship in the third quarter.
Transatlantic lost $15.5 million after tax in the first nine months of 2009 against a year earlier profit of $29.9 million as revenue fell to $254 million from $280 million.