Jinhui Shipping and Transportation has warned of a “significant decline” in its net profit for the three months ended 31 March 2013 compared to a year earlier. The company attributed the expected profit plunge to decline in chartering income from its fleet of owned and chartered-in vessels as charter contracts entered in late 2012 and early 2013 were at relatively low rates compared to that of the corresponding period in the first quarter of 2012.

“Jinhui Shipping is exposed to the continued low freight rate environment due to a lacklustre global economic growth as well as an oversupply of tonnages,” the company said.

The dry bulk shipping company did not give a forecast figure of the profit.

In the first quarter of 2012, Jinhui Shipping recorded profit of $8.84m, representing a sharp 75.2% fall from a profit of $35.68m registered in the same period of 2011.