Covid surge, lockdown threat cast shadow on dry bulk exports
Published: 10:05 PM,May 02,2021 | EDITED : 08:05 PM,May 02,2021
17-India-Covid-surge,-lockdown-threat-cast-shadow-on-dry-bulk-exports----Salalah-Port
BUSINESS REPORTER
MUSCAT, MAY 2
General cargo exports — a thriving activity at Salalah Port underpinned by dry bulk commodities such as limestone and gypsum — could be impacted should the resurgence of the coronavirus pandemic in markets like India, a key destination for Omani mineral exports, result in lockdowns, the port has warned.
Volumes handled at the General Cargo Terminal (GCT) totaled 4,339K tonnes during Q1 2021, as compared to 4,350K tonnes in Q1 2020.
The positive volume development of general cargo seen in the last quarter of 2020 continued in the first quarter of 2021 with volumes on par with the first quarter of last year, said the port, noting that limestone, gypsum, methanol and cement were among the major commodities exported from Salalah to nearby markets.
However, the short-term outlook is overshadowed by the Covid situation in markets, such as India, that are important destinations for bulk exports.
“On the dry bulk, while the demand side is strong in Asia for limestone and gypsum, rising Covid cases in markets like India could impact the demand negatively, should they resort to lockdown similar to 2020’’, said Braik Musallam al Amri, Chairman — Salalah Port Services Co SAOG, in the Directors’ report for the quarter ended on March 31, 2021.
“The shortage and high charter rates of tonnage are expected to negatively impact dry bulk markets in Q2 and Q3 2021, if the situation persists. Commodities like grain and liquid bulk is only expected to gain momentum from Q3 due to influence in international pricing trends’’, he further added.
Meanwhile, container throughput handled by the port dipped slighted to 1,095K TEUs during the first quarter of this year, down from 1,167K TEUs in the corresponding period of 2020, a decrease of six per cent.
“Container throughput for the first quarter of 2021 was lower than the same period last year, mainly because the port saw exceptionally strong volumes in the first quarter of 2020. The company has retained all major customers and Maersk our major business partner has maintained consistent volumes’’, said the Chairman.
Salalah Port posted a consolidated net profit for Q1, 2021 of RO 1.631 million, as compared to the corresponding period last year at profit of RO 10.232 million. Consolidated EBITDA was recorded at RO 4.471 million during Q1, 2021, as compared to RO 14.655 million during same period last year. (This includes an insurance claim amount of RO 11.25 million). The underlying net result of Q1, 2020 excluding insurance settlement was RO 1.887 million compared to RO 1.789 million this year, the port said. Container Terminal revenue fell 9.4 per cent as compared to corresponding period last year due to the lower container throughput.
Revenues earned by the General Cargo Terminal (GCT) increased 11.4 per cent compared to the same period last year mainly due to an increase in additional terminal services (amongst other RoRo services) and lower volumes handled at Berth 31 compared to same period last year.
MUSCAT, MAY 2
General cargo exports — a thriving activity at Salalah Port underpinned by dry bulk commodities such as limestone and gypsum — could be impacted should the resurgence of the coronavirus pandemic in markets like India, a key destination for Omani mineral exports, result in lockdowns, the port has warned.
Volumes handled at the General Cargo Terminal (GCT) totaled 4,339K tonnes during Q1 2021, as compared to 4,350K tonnes in Q1 2020.
The positive volume development of general cargo seen in the last quarter of 2020 continued in the first quarter of 2021 with volumes on par with the first quarter of last year, said the port, noting that limestone, gypsum, methanol and cement were among the major commodities exported from Salalah to nearby markets.
However, the short-term outlook is overshadowed by the Covid situation in markets, such as India, that are important destinations for bulk exports.
“On the dry bulk, while the demand side is strong in Asia for limestone and gypsum, rising Covid cases in markets like India could impact the demand negatively, should they resort to lockdown similar to 2020’’, said Braik Musallam al Amri, Chairman — Salalah Port Services Co SAOG, in the Directors’ report for the quarter ended on March 31, 2021.
“The shortage and high charter rates of tonnage are expected to negatively impact dry bulk markets in Q2 and Q3 2021, if the situation persists. Commodities like grain and liquid bulk is only expected to gain momentum from Q3 due to influence in international pricing trends’’, he further added.
Meanwhile, container throughput handled by the port dipped slighted to 1,095K TEUs during the first quarter of this year, down from 1,167K TEUs in the corresponding period of 2020, a decrease of six per cent.
“Container throughput for the first quarter of 2021 was lower than the same period last year, mainly because the port saw exceptionally strong volumes in the first quarter of 2020. The company has retained all major customers and Maersk our major business partner has maintained consistent volumes’’, said the Chairman.
Salalah Port posted a consolidated net profit for Q1, 2021 of RO 1.631 million, as compared to the corresponding period last year at profit of RO 10.232 million. Consolidated EBITDA was recorded at RO 4.471 million during Q1, 2021, as compared to RO 14.655 million during same period last year. (This includes an insurance claim amount of RO 11.25 million). The underlying net result of Q1, 2020 excluding insurance settlement was RO 1.887 million compared to RO 1.789 million this year, the port said. Container Terminal revenue fell 9.4 per cent as compared to corresponding period last year due to the lower container throughput.
Revenues earned by the General Cargo Terminal (GCT) increased 11.4 per cent compared to the same period last year mainly due to an increase in additional terminal services (amongst other RoRo services) and lower volumes handled at Berth 31 compared to same period last year.