Jinhui Shipping and Transportation

Bermuda registered and Hong Kong based Jinhui Shipping is cautious as macro economy remains uncertain. Oslo Stock Exchange listed Jinhui Shipping and Transportation finds it difficult to plan for the future while the global economy looks uncertain. According to Jinhui Shipping and Transportation’s vice-president Raymond Ching, United States-China trade war is the biggest overhang that’s affecting the sentiment in the shipping business. Furthermore, there’s a general fear of a global economic slowdown, which translates to weakness in demand in shipping industry. Jinhui Shipping and Transportation expects a volatile market in near future for both shipping business and global economy. On the other hand, low number of newbuilding orders at the Far East shipyards, is going to give the shipping market a strong support. Hong Kong based shipowner and operator Jinhui Shipping and Transportation is focusing its investments in securities rather than asset plays and believes in that asset plays come to an end. In June 2019, Jinhui Shipping and Transportation was forced to terminate the purchase of one of two supramax bulk carriers from Greek shipowner Chartworld Shipping. Jinhui Shipping and Transportation is investing cash into yield enhancement securities which will provide positive cash-flows for the company. Jinhui Shipping and Transportation has reported total debt of $118 million in Q2 2019, against $90 million Q2 2018. Jinhui Shipping and Transportation opts for Low Sulfur Fuel Oil (LSFO) to meet IMO 2020 regulations instead of scrubbers. In May 2019, Greek shipowner and operator Chartworld Shipping delivered one of the supramax bulk carriers to Jinhui Shipping and Transportation, but Jinhui Shipping and Transportation was forced to cancel its purchase of the second supramax bulk carrier because Chartworld Shipping was unable to deliver supramax bulk carrier on time. Subsequently, Chartworld Shipping refunded initial deposit of $625,000 to Jinhui Shipping and Transportation. Jinhui Shipping and Transportation has reported net loss of $1.1 million in Q2 2019 which equates to a basic loss per share of $0.01. Jinhui Shipping and Transportation reported net profit of $2.84 million in Q2 2018 which equates to a basic profit per share of $0.026. Jinhui Shipping and Transportation reported revenue of $14 million in Q2 2019, against $22.1 million in Q2 2018. Drop in revenue was due to the weaker freight environment and a reduction in owned ships. In 2018, Jinhui Shipping and Transportation had a fleet of 23 and in 2019 has fleet of 19 bulk carriers.