Dry bulk shipowner Jinhui Shipping and Transport has seen its results slumped to an annual loss of $86.75m, due primarily to recognition of an impairment loss and lower revenue.

Jinhui Holdings, which owns 54.77% in Jinhui Shipping, reported a 2014 deficit of $86.75m as against a profit of $25.4m in 2013.

The considerable loss was blamed on the recognition of an impairment loss of $50.59m on certain owned vessels and reduced hire and freight revenue due to low freight rates in weak shipping market.

Revenue for the year ended 31 December 2014 plunged by 39.2% year-on-year to $132.25m.

“Over the last couple of months, the dry bulk market underwent a severe price correction and the fierce commodities price battles provoked a shift in regional seaborne trade routes from transatlantic to Pacific regions and consequentially reduced the demand for dry bulk tonne miles,” Jinhui Shipping said.

“Market freight rates were under pressure by these short term turbulences while the oversupply of tonnages continued to hinder the recovery in the dry bulk shipping market,” it added.

The average daily time charter equivalent rates generated by Jinhui Shipping’s vessels plummeted to $8,350 in the fourth quarter of 2014 compared to $14,092 in the previous corresponding period.

Currently, Jinhui Shipping owns a fleet of 36 bulk carriers. It is waiting to take delivery of a 60,000-dwt supramax newbuilding by 31 March 2016.