Singapore-based Grindrod Shipping has booked a first-quarter profit of just over $29m in what it has described as a historically strong start to 2022. The bulker owner saw a 60% year-on-year growth in revenue to $110.2m as its handysize and supramax/ultramax bulkers achieved average time charter equivalent (TCE) rates per day of $22,201 and $24,385, respectively.

“The quarter was the strongest first quarter for charter rates for our ship types in over a decade and lays a solid foundation for the rest of the year,” said Grindrod Shipping interim chief executive Stephen Griffiths. “Despite the uncertainty in the global economy created by the Russian/Ukraine conflict, Covid lockdowns in China and the disruptions to traditional trade routes, the outlook for the dry bulk sector appears to remain positive.” Griffiths said a healthy demand for minor bulk commodities and continued cargo spillover from tight container shipping markets, coupled with the smallest newbuilding orderbook in decades and congestion continue to lead to a tight supply/demand balance and strong freight rates.

Last week, Grindrod Shipping completed its withdrawal from the tanker market with the sale of the 50,100-dwt MR Matuku (built 2016) for $30m. It also exercised a purchase option on the chartered-in 57,800-dwt supramax IVS Pinehurst (built 2015) for $18m. The bulker is said to be worth $26.5m. The end of April saw long-serving executive Martyn Wade stand down as chief executive with a permanent replacement yet to be named. This has led to speculation that a sale or merger of the US-listed company may be on the cards. Sources recently told TradeWinds that Grindrod has been quietly exploring a possible sale or combination for several months.

London-listed Taylor Maritime Investments, which has built up its stake in Grindrod to 26.6%, has been touted as a potential suitor. Grindrod Shipping’s Island View Shipping brand operates a core fleet of 15 handysize bulkers and 16 supramax and ultramaxes.