Sinotrans Shipping’s net profit slumped 78.1% to USD20.1 million last year, down from USD91.7 million in 2011. Prospects for the dry bulk cargo sector, which contributed 89.8% of total revenues of USD222.2 million last year, remain gloomy in 2013. Xie Shaohua, Chief Financial Controller (CFO), said “a large amount of fresh tonnage will pour into the [dry bulk] market” this year. He estimated there would be a 7.4% increase in the dry bulk fleet this year based on figures from Clarkson, the British ship broking house. Although this would ease from the 10.3% tonnage rise last year, Xie said there would be just moderate growth of 5% in dry bulk seaborne trade volumes in 2013. Sinotrans Shipping operates 42 dry cargo and nine container ships. Executive Director Li Hua said the container market’s prospects were linked to economic recovery in the U.S. and Europe. Barclays Analysts Esme Pau and Jon Windham said the net profit figure indicated Sinotrans Shipping barely broke even in the second half, making all the profits in the first half. They said: “Despite some early signs of improvement in current spot rates, Sinotrans’ [exposure to] long-term contracts renders it less capable of benefiting from spot rate increases.” Sinotrans Shipping posted a USD7.5 million operating loss last year which included an impairment provision of USD7.04 million, mainly on four elderly container ships. But this was offset by an increase in investment income which boosted total cash to USD916.8 million in 2012, against USD892.1 million in 2011. The Barclays analysts said the firm’s cash pile “would make it an apt candidate to make vessel purchases at current low new-building prices should the company opt to do so”. Li reiterated plans for Sinotrans to expand its fleet, although after taking delivery of two new dry bulk Panamax ships last year no other ships are on order. Li hoped the Chinese government and shipping industry could “formulate policies that would be beneficial for healthy development” of the shipping sector, including possible rebates for shipbuilders and tax breaks.

The port of Antwerp is not only seeking to increase Chinese traffic, but also urging Chinese investors to get involved in a multibillion-euro expansion of the port. Officials from the Antwerp Port Authority have been in Ningbo, in Zhejiang province, and Shanghai to attract Chinese business partners and shipping companies, and they have more visits planned to other Chinese port cities this year, the China Daily reports. Luc Arnouts, its Chief Commercial Officer, said he aims to attract Chinese interest to a city which is considered an ideal springboard to Europe. He said that 60% of European purchasing power is located within a 500 kilometer radius of Antwerp, and the port is highly cost-efficient compared to other European sites. Another highlight of his pitch to potential Chinese business partners is that Antwerp is serviced by one of the longest navigation channels in Europe, at 100 kilometers, enabling it to receive the very largest container vessels. He said Chinese investors are being invited to participate in all the projects being planned at the port, including new logistics, loading and downloading services. However, despite having more than 900 companies operating in the port area, only a handful are Chinese, including China Ocean Shipping (Group) Co and a few logistics companies. Arnouts said the port is perfectly located to handle goods destined for France and Germany, particularly.

“We are always correcting the wrong impression that we are a port in a small country, Belgium. In fact, we are the second-biggest European port,” said Arnouts. “This is very important for Chinese commercial decision makers, and we visit here three times a year to reinforce this message.” The main goods being shipped between China and Antwerp are containerized freight, metal products and chemicals. In the opposite direction are shipped containerized freight, ore and recycled metal, and petroleum products. Arnouts said that by 2025, about €1.6 billion is expected to have been invested in the expansion of Antwerp port, building its capacity on three fronts: cargo handling, logistics and general industrial facilities. Marc Van Peel, Authority Chairman and Vice Mayor of Antwerp, said trade between the city and China had expanded rapidly in recent years, and official figures show China is now its fourth-largest trading partner, contributing about 5% of Belgium’s economy. He added that the port has also become a learning hub for Chinese port management staff, with more than 3,000 going through training in Antwerp over the years, the China Daily reports.

China Shipping Terminal Development will make its first terminal investment in Europe after agreeing to buy a 24% stake in APM Terminals Zeebrugge. The move came six months after the firm, which is wholly owned by China Shipping Container Lines (CSCL), expressed interest in taking a stake in the Zeebrugge facility, one of three terminals at the port. The company will acquire its interest from APM Terminals, the ports division of AP Moller-Maersk, which owns 75%. Shanghai International Port Group (SIPG) holds the remaining 25% interest in APM Terminals Zeebrugge which it bought for €27.16 million in 2010. The deal should be finalized by the end of June. Mark Geilenkirchen, Managing Director of APM Terminals Zeebrugge, declined to say how much China Shipping will pay for its stake, but he hoped it would generate more container traffic through the terminal. “The reason why we are selling is that we get hold of an Asian carrier,” according to Geilenkirchen. He said CSCL has one service calling at Zeebrugge, adding that talks to expand the number of services are being held. China Shipping Terminal Development has stakes in terminals in Los Angeles, Seattle and Egypt together with interests in 13 port facilities in China. The two-berth Zeebrugge terminal handles about 350,000 TEU a year but has an annual handling capacity of 1 million TEU. Jan Vannieuwenburg, General Manager for China and Asia at the Port of Zeebrugge, said the deal sent “a very important message to the Chinese market. More than 50% of Zeebrugge’s cargo is China-related”. CSCL owns and operates a fleet of about 140 vessels including eight 14,074 TEU container ships dedicated to Asia-Europe services, the South China Morning Post reports.

A Chinese shipping firm is planning the country’s first commercial voyage through a shortcut across the Arctic Ocean to the United States and Europe this year, Yang Huigen, Director General of the Polar Research Institute of China, said. Last year, the icebreaker Xuelong explored the route. For China, the route would save time and money. The distance from Shanghai to Hamburg is 5,200 kilometers shorter via the Arctic than via the Suez Canal, Yang said. According to one scenario, 5% to 15% of China’s international trade, mostly container traffic, would use the route by 2020. “We see a potential there but it will not be the new Suez Canal,” said Christian Bonfils, Managing Director of Denmark-based Nordic Bulk Carriers, which sent 10 ships through the route last year carrying products such as iron ore. “You will not see a boom in the construction of ice-class vessels – the season is too short,” he said of a shipping season that lasts from about July to November, referring to ships needing specially hardened hulls. Sergei Frank at Russia’s Sovcomflot, said that there had been a steady increase in the numbers of vessels using the route in recent years. The thaw will also make it easier to reach remote regions in the Arctic, without crossing from the Pacific to the Atlantic.

Cosco International, the marine fuels, paints and ship-trading subsidiary of Cosco, is facing mixed fortunes this year as shipping markets get tougher and it targets opportunities and acquisitions. Chairman Ye Weilong said there would be limited recovery in freight and ship charter rates this year, while the supply of new ships being delivered would outpace the growth in cargo demand. Consequently, shipping companies will adopt more stringent cost control measures, which could see ship repairs and maintenance cut. He said the company was exploring more development opportunities. Cosco Europe and Yuantong Marine Service signed a memorandum of understanding to acquire German marine equipment company Hanyuan Technical Service Center. Managing Director Xu Zhengjun said the company was still continuing to discuss merger and acquisition opportunities in the marine fuels sector, but there was no specific timetable for acquisitions. The opportunities include the 50% stake held by Cosco’s parent company, China Ocean Shipping (Group), in marine fuels company China Marine Bunker (PetroChina). Ye said there was speculation that the central government could adopt shipping-friendly policies later this year. Among the possibilities thought to be under consideration were tax breaks for Chinese shipping companies and shipyards and minimum freight rates for domestic cargoes. Cosco International saw net profit drop 7% to HKD363 million last year from HKD390 million. Turnover fell 6% to HKD10 billion from HKD10.66 billion a year earlier. Marine fuel was the biggest revenue earner, contributing HKD6.28 billion of the total, while marine and container coatings were the main profit drivers, generating HKD137.86 million in net profit.