Managing director Chandchutha Chandaratat said yesterday that freight rates are on an upward trend as global demand for bulk shipping is expected to grow by 6.7 per cent this year while

supply is expected to expand by 6.6 per cent.

The company's freight rates have surged by 12.82 per cent from the first quarter to US$14,290 (Bt494,400) a day.

Chandchutha believes that freight rates should stay at that level for the rest of the year.

During the first half of the current fiscal year, Thoresen Thai's net profit climbed 22 per cent on year to Bt2.42 billion as sales and service revenue rose by 25 per cent to Bt9.37 billion

In the second quarter, net profit climbed 23 per cent to Bt1.29 billion as sales and service revenues surged by 30 per cent to Bt4.84 billion.

Strong growth in the demand for dry-bulk shipping was mainly driven by such emerging markets as China, India and the Middle East. China has large shipping needs for imports and exports of commodities such as ore, coal and cereals.

Orders for new ships accounting for 27 per cent of total dry-bulk ships worldwide lends confidence that there will be more room for growth over the next three or four years, Chandchutha said.

Thoresen Thai Agencies is negotiating to have a ship built with carriage capacity of 50,000 dead-weight tonnes, he said, adding that the deal can be sealed in a few months.

Its fleet of 45 ships with carriage capacity of 1.23 million dwt averages 17.73 years in age.

Watcharapong Thongrung

The Nation