China Shipping Development - the tank and dry bulk division of carrier China Shipping Group - has informed the Hong Kong Stock Exchange that the deficit from the fiscal year 2013 will amount to approx. USD 380 million, according to Lloyd's List.
The deficit is caused by low demand and overcapacity in the international as well as the national shipping market in 2013, says the company in the brief to the stock exchange, which also points to other reasons for the massive deficit. Among several factors, a USD 68 million loss is attributed to an impairment related to the retiring of 13 dry bulk vessels and seven oil tankers in 2014. The impairment is included in the 2013 report even though the ships will not be taken out service until later this year.