KDM cargo shipment revenue falls 7% m/m in June

KDM Shipping (KDM PW) reported monthly revenue from cargo shipping at USD 1.6 mln in June, which is 7% lower m/m, on the back of a 3% m/m decline in average freight rate to USD 28.4/t and a 4% decrease in cargo volume to 54.9 kt. In 1H13, KDM Shipping increased revenue from cargo shipping 31% yoy to USD 9.7 mln, on 45% yoy higher volume shipped, or 337 kt.

Roman Topolyuk: The June decrease in freight rates occurred due to a decline in transportation tariffs across the board, with the biggest decline recorded for wheat (-21% m/m to USD 23.2/t, representing 21% of cargo transported in June). We expect the freight rate to increase in August following greater business activity both in Ukraine’s metals sector, and in shipments of newly harvested grain for export.