Dry bulk to remain weak in 2011 - Thoresen

Charter rates in the dry bulk market are not expected to rebound for the rest of this year despite a China-driven demand, dry bulk vessels operator Thoresen Thai predicted, Seatrade Asia online reports. “Although demand is robust driven by crude steel output in China, (tonnage) supply growth will most probably outpace demand growth and place continued pressure on time-charter rates,” Thoresen said in a second quarter results statement. The Singapore-listed firm was hit hard by the weak dry bulk market as it posted a net loss of Baht 115.44m ($3.81m) in the quarter ended 31 March 2011, compared to a net profit of Baht 451.4m in the same quarter last year. Total revenues were down slightly to Baht 4.13bn in the quarter compared to Baht 4.18bn in the previous quarter, it announced Wednesday. “The Baltic Dry Index (BDI) remains very low, down by more than 45.6% since the start of our financial year as of 11 May 2011. For the remaining quarters of financial year 2011, the outlook of the BDI remains weak considering the oversupply of tonnage,” the company said. Thoresen itself is waiting to take delivery of two newbuildings in June 2011 and March 2012 respectively. At the end of March 2011, Thoresen owns 24 vessels.