Essar Shipping cargo handling up 22% in FY17

Essar Shipping Ltd today reported strong operational performance for the last financial year ended March 31, with 22 per cent growth in cargo handling to 11.5 million tonnes (MT).
The company's 14-vessel fleet also grew its capacity utilisation to 94 per cent during the period, up from 80 per cent in the previous financial year.
The Baltic Dry Index, a key indicator of freight rates, has also gone up by four times during 2016-17-from an all-time low of 290 (in February 2016) to a high of 1,300 (in March 2017).
"In FY17, ESL carried dry bulk cargo of almost 11.5 MT, as against 9.4 MT in the previous financial year. More than 80 per cent of its fleet carries dry bulk cargo, which includes products like iron ore, coal, bauxite and limestone," the company said in a statement.

ESL's two VLCCs-MT Smiti and MT Ashna-are used for crude oil transportation and are employed on spot contracts to take advantage of volatility in the crude oil prices, it said.
"A highlight of the FY17 fiscal was the doubling in coastal cargo movement triggered by the increased capacity utilisation at Essar Steel, which is among ESL's key customers," the company said.

The company also benefited from a considerable growth in back-haul cargo both on the east and west coasts of India because of the all-round growth in Essar Steel.
ESL Executive Director & CEO Ranjit Singh said an ideal mix of captive and market cargo has ensured better utilisation of vessels.

"The stronger Baltic Dry Index, coupled with increased activity and capacity utilisation at Essar Steel, has also made a positive impact on our toplines... Almost half of our fleet is currently engaged in coastal movement," he added.