Norway’s Green Reefers saw its operating loss widen to $5.7 million in the third quarter from $1.7 million a year ago, as spot freight rates slumped to a seven-year low amid increasing competition from ocean container carriers, the Journal of Commerce reports.
The refrigerated cargo ship-owner booked net operating income after deducting voyage costs of $12.5 million against $19.2 million in the third quarter of 2010. The pre-tax loss narrowed to $8.9 million from $11.4 million.
The Bergen-based company said its gross freight income slumped to an all-time low as the majority of its ships are fixed for spot voyages at rates that collapsed to lows last seen in 2001-2003.
There was a lack of demand, particularly for transport of fish, Green Reefers’ key cargo, during the traditionally weak third quarter, and competition from container lines increased in all market segments.
Green Reefers said it expects rates to improve during the fourth quarter peak season, but the carrier is exposed to developments in Russia and Eastern Europe and the Mediterranean, the main markets for specialized reefer tonnage.
Green Reefers will establish a 48-ship pool with Antwerp-based reefer operator Seatrade in January in a bid to combat competition from container lines. The group recently strengthened its cash position by $12 million with the sale and lease back of six vessels to its main shareholder.
The refrigerated cargo ship-owner booked net operating income after deducting voyage costs of $12.5 million against $19.2 million in the third quarter of 2010. The pre-tax loss narrowed to $8.9 million from $11.4 million.
The Bergen-based company said its gross freight income slumped to an all-time low as the majority of its ships are fixed for spot voyages at rates that collapsed to lows last seen in 2001-2003.
There was a lack of demand, particularly for transport of fish, Green Reefers’ key cargo, during the traditionally weak third quarter, and competition from container lines increased in all market segments.
Green Reefers said it expects rates to improve during the fourth quarter peak season, but the carrier is exposed to developments in Russia and Eastern Europe and the Mediterranean, the main markets for specialized reefer tonnage.
Green Reefers will establish a 48-ship pool with Antwerp-based reefer operator Seatrade in January in a bid to combat competition from container lines. The group recently strengthened its cash position by $12 million with the sale and lease back of six vessels to its main shareholder.
