Jutha Maritime sees freight surcharge recovery in Q2
Jutha Maritime Public, a marine-transport company, anticipates the recovery of freight surcharges in the second half of this year as global fleets have slowed down their expansion while demand for marine transport will grow as the worldwide economy improv
Managing director Chanet Phenchart said the recovery of freight surcharges would be extended until next year on higher demand for marine transport along with the upward trend of the Chinese economy. At the same time, the expansion of global fleets will be slowed, which will lead to the balance of freight surcharges.
The company has forecast 5-per-cent revenue growth this year in line with the predicted continued recovery of the fleet industry.
Every Bt1 rise of the Thai currency against the US dollar will affect Jutha’s revenue by about Bt12 million, but will also reduce its dollar debt by Bt22 million from the current total of US$22 million (Bt644 million).
The company plans to revise its strategy for dealing with customers by focusing more on creating short-term contracts with average terms of six months. Once the fleet industry has picked up, it can increase the freight rate. But it has to wait for the expiration of contracts first before revising up the rate.
Currently it manages 12 vessels under ship-management contracts and operates five vessels of its own. This year it has no plan to buy new vessels but will focus on fully generating revenue from the existing fleet.
