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Trafigura’s dry freight desk reports positive results

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Dry Bulk,


Commodity trader, Trafigura, has reported a “positive year” for its dry freight desk, according to its 2016 Annual Report for the year to 30 September, despite challenging conditions persisting in the dry bulk market.

The positive results from its dry freight desk was based on “limiting counterparty exposure, retaining a lean and nimble market position, and focusing on niche markets where we have a strong competitive advantage,” the company said.

These niche markers include moving concentrates from Chile, Peru and Mexico, and iron ore from Port Sudeste, the major Brazilian export terminal.

Looking ahead, the company expect “distressed market conditions” to continue through 2017, although there were some positive signs that the market was turning around.

“There are signs that the market may start to turn positive in the next one to two years, with a record volume of dry freight tonnage being scrapped, no new ship orders being placed and seaborne cargo continuing to expand,” the company said.

Overall, the company reported group net profits of US$975 million, slightly down from the previous year’s US$1.6 billion.

Read the article online at: https://www.drybulkmagazine.com/shipping/09122016/trafiguras-dry-freight-desk-reports-positive-results/

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