Reported 8 months ago
The international geopolitical turmoil has led to an increase in freight rates, with the spot market for Capesize vessels seeing a recent 5% surge in daily rent to $25,000. Bulk shipping company Yu Min (2606), which mainly operates Capesize vessels, is expected to see steady growth in profit levels in the second quarter. Analysts point out that Yu Min has the most Capesize vessels domestically and is generally a spot cargo bulk shipping operator, anticipating positive growth in the bulk shipping market this year. With the growth in daily rent for Capesize vessels in the second quarter, revenue is expected to further increase, with annual profit growth likely to exceed NT$5. Yu Min aims to meet international standards for transportation efficiency and low carbon emissions by timely conducting fleet renewal work, with a long-term goal of having a fleet of over 100 vessels and a total carrying capacity exceeding 10 million tons. This year's steady global economic growth is expected to drive an increase in demand for bulk raw materials, with global steel demand growing by 1.7%. This will boost demand for Capesize vessels.
Source: YAHOO