International reefer operator Star Reefers has reported that first quarter net income dropped to US$14.8m from US$15.4m in 2008, partly a reflection of lower export volumes of bananas from Central America and deciduous fruit from Chile and Argentina.
These lower volumes hit demand for specialised reefer vessels during the period, the group said in a statement, which in turn pressed down spot rates.
In addition, the percentage of reefer goods transported in containers has increased as container lines target the segment to support earnings in a depressed market, the group added.
Gross freight revenues for the quarter amounted to US$66.3m, down from US$67m last year, while capacity fell 1 per cent. Ship operating and administrative expenses totalled US$24.6m, compared with US$22.8m in 2008.
'The credit crisis and the volatility in the global financial markets have continued to adversely impacted world trade,' the group said. Estimates for worldwide GDP growth and expectations of trade flows have been cut back significantly. Whilst a number of steps have been taken to reduce the impact of these adverse changes on Star Reefers, there can be no doubt that the company will nonetheless have a challenging 2009.'
