Singapore-based handysize dry bulk owner Pioneer Marine reported a second quarter loss of $2.5m but believes it is well positioned to benefit from an upturn in the market.

The Norway OTC-listed company lost $1.66m in the first quarter of the year bringing its half year loss to $4.1m.

Pioneer Marine was founded last year as a Marshall Islands joint venture led by Pankaj Khanna, previously a senior executive at Ocean Rig and Dryships, and US private equity investors. The company is based in Singapore and a fleet of 27 handysize bulkers comprising 13 currently on the water and 14 newbuildings for delivery in 2015 and 2016.

Khanna blamed the widening loss in the second quarter on “certain one-off factors”. “The ban on Indonesian exports of unprocessed minerals, the slower pace of Argentinian grain exports and the turmoil in Ukraine have adversely impacted demand for shipping minor bulk cargoes in the first half of 2014.”

However, with the pick-up in dry bulk markets seen in recent weeks he is upbeat about the company’s prospects. “Given our strategy to focus on spot fixtures, we believe Pioneer is well positioned to benefit from the expected increase in freight rates," Khanna said.