Dry bulk shipowner Jinhui Shipping and Transportation has slumped into the red with a first quarter loss of $3.2m.

The Hong Kong-listed company had recorded a gain of $2.83m in the previous corresponding quarter of 2013.

First quarter revenue also declined 32% year-on-year to $36.69m as chartering earnings dropped due to increasing ballasting and positioning periods, suppressed spot rates in those regions with oversupply of tonnages, and a $3m loss on investment portfolio.

“While dry bulk shipping market is expected to improve in longer term as supply of newbuildings deliveries slows down and global economic indicators remain encouraging, market freight rates in first quarter of 2014 were still suppressed by short term imbalance tonnage supply and demand in certain regions as large number of vessels have been ballasting from the weaker Pacific basin to Atlantic basin,” Jinhui commented.

“We remain positive with the longer term market given the long term import requirement from China and Asian countries are growing. Of course, this would only work providing there would be very few irrational ordering of newbuildings in future, in particular those ordered by parties with no intention to be long term committed in shipping,” it added.